ECONOMICS
MONETARY POLICY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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a trade surplus
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trade deficit
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a positive balance of trade
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a national trade difference
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Detailed explanation-1: -A country that imports more goods and services than it exports in terms of value has a trade deficit or a negative trade balance.
Detailed explanation-2: -A trade deficit occurs when a nation imports more than it exports.
Detailed explanation-3: -If the exports of a country exceed its imports, the country is said to have a favourable balance of trade, or a trade surplus. Conversely, if the imports exceed exports, an unfavourable balance of trade, or a trade deficit, exists.
Detailed explanation-4: -If the value of exports exceeds the value of imports, it is said that there is a trade surplus; if imports are greater than exports, the country has a trade deficit.
Detailed explanation-5: -A trade deficit occurs when a country’s imports exceed its exports during a given time period. It is also referred to as a negative balance of trade (BOT). The balance can be calculated on different categories of transactions: goods (a.k.a., “merchandise”), services, goods and services.