The term 'Balance of Trade' refers to: MCQ with Answer and Explanation

The term 'Balance of Trade' refers to:
A. Capital account balance
B. Overall surplus or deficit in balance of payments
C. Difference between exports and imports of goods and services
D. Difference between exports and imports of goods only
Answer: Option D
Solution (By JKSSB Mock Tests)
Balance of Trade is the difference between the value of exports and imports of merchandise (goods) only. Balance of payments is a broader concept including services and capital flows.

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Practice More Economy Set 1 Questions

Question #1
External economies of scale are enjoyed by a firm when:
A. the entire industry expands
B. it reduces prices
C. it merges with another firm
D. the firm increases its own size

Correct Answer: Option A


Explanation:
External economies arise from expansion of the industry as a whole, benefiting all firms.

This question belongs to: Economy GK Economy Set 1
Question #2
The 'Essential Commodities Act' was amended in 2020 to deregulate which commodities?
A. Petroleum products
B. Fertilizers
C. Medicines
D. Cereals, pulses, oilseeds, edible oils and onion

Correct Answer: Option D


Explanation:
The Essential Commodities (Amendment) Act 2020 deregulated cereals, pulses, oilseeds, edible oils and onion.

This question belongs to: Economy GK Economy Set 1
Question #3
The 'Finance Bill' is a Money Bill and can be introduced only in:
A. joint session
B. Lok Sabha
C. either House
D. Rajya Sabha

Correct Answer: Option B


Explanation:
A Money Bill including Finance Bill can be introduced only in Lok Sabha.

This question belongs to: Economy GK Economy Set 1