ECONOMICS
BALANCE OF PAYMENTS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Invisible item
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Visible item
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Either A or B
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None of the above
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Detailed explanation-1: -These are not recorded at ports. All types of services like services of shipping, banking, tourism, investment services and unilateral transfers are invisible items. The balance of exports and imports of invisibles is called balance of invisible trade.
Detailed explanation-2: -Visible items refer to those items which are made of some matter or material and can be seen, touched and measured. For example, jute, cotton, etc.
Detailed explanation-3: -visible trade, in economics, exchange of physically tangible goods between countries, involving the export, import, and re-export of goods at various stages of production. It is distinguished from invisible trade, which involves the export and import of physically intangible items such as services.
Detailed explanation-4: -Service transactions are the invisible items in the ‘Balance of Payments’ Account. An invisible trade is an international transaction that does not include an exchange of tangible goods.