ECONOMICS
BALANCE OF PAYMENTS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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If balance of trade is showing deficit of rupees 200 crore and value of imports is rupees 900 crore, then, the value of exports would be
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Rupees 200 crore
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Rupees 500 crore
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Rupees 700 crore
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Rupees 900 crore
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Explanation:
Detailed explanation-1: -Imports = Exports-Balance of Trade = 500-(-600) = 1, 100. Q.
Detailed explanation-2: -So, Imports = Exports-Balance of trade = 300−(−)400=Rs. 700 crores.
Detailed explanation-3: -The trade deficit is calculated by taking the value of goods being imported and subtracting it by the value of goods being exported. If a country has a trade deficit, it imports (or buys) more goods and services from other countries than it exports (or sells) internationally.
Detailed explanation-4: -So, Exports = Balance of trade + Imports = (−5000)+9000=Rs. 4000 crores.
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