ECONOMICS
BALANCE OF PAYMENTS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Credit entry in current account (visible trade a/c)
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Debit entry in current account (visible trade a/c)
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Credit entry in current a/c (invisible trade a/c)
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Debit entry in current a/c (invisible trade a/c)
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Detailed explanation-1: -The visible trade balance (merchandise trade balance) is that part of the balance of trade figures that refers to international trade in physical goods, but not trade in services; it thus contrasts with the invisible balance. The balance is calculated as the value of visible exports less the value of visible imports.
Detailed explanation-2: -The correct answer is Balance of trade . The difference between the value of a country’s exports and the value of its imports for a certain period is known as the balance of trade (BOT).
Detailed explanation-3: -What Is an Import? An import is a good or service bought in one country that was produced in another. Imports and exports are the components of international trade. If the value of a country’s imports exceeds the value of its exports, the country has a negative balance of trade, also known as a trade deficit.
Detailed explanation-4: -The three types of balance of trade are a favorable balance trade, an unfavorable/deficit balance of trade, and an equilibrium balance of trade. The components of the balance of trade are exports and imports of goods and services.