ECONOMICS
BALANCE OF PAYMENTS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Exports-imports
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Trade balance + balance of non factor services
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Balance of non factor services + balance of income + balance of transfers
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Exports-imports + balance of factor services
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Detailed explanation-1: -The invisible balance or balance of trade on services is that part of the balance of trade that refers to services and other products that do not result in the transfer of physical objects. Examples include consulting services, shipping services, tourism, and patent license revenues.
Detailed explanation-2: -invisible trade, in economics, the exchange of physically intangible items between countries. Invisible trade can be distinguished from visible trade, which involves the export, import, and reexport of physically tangible goods.
Detailed explanation-3: -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.
Detailed explanation-4: -Current Account: It shows export and import of visibles (also called merchandise or goods-represent trade balance) and invisibles (also called non-merchandise). Invisibles include services, transfers and income.