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

The term 'Balance of Trade' refers to:
A. Capital account balance
B. Difference between exports and imports of goods and services
C. Overall surplus or deficit in balance of payments
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
The concept of 'Original Sin' in the literature on emerging-market debt refers to:
A. The first occurrence of a debt default
B. Only domestic-currency debt problems
C. The sin of high public spending
D. The historical difficulty of many countries in borrowing internationally in their own currency

Correct Answer: Option D


Explanation:
Original sin denotes the inability of most emerging-market and developing countries to borrow abroad in their own currencies, forcing them to issue foreign-currency debt and creating currency mismatches.

This question belongs to: Economy GK Economy Set 1
Question #2
The 'Credit Information Bureau (India) Limited' is commonly known as:
A. CIBIL
B. ICRA
C. CRISIL
D. CARE

Correct Answer: Option A


Explanation:
Credit Information Bureau (India) Limited is known as CIBIL.

This question belongs to: Economy GK Economy Set 1
Question #3
Which of the following is a classification of taxes based on their impact on income distribution?
A. Only ad valorem and specific
B. Only direct and indirect
C. Only central and state
D. Progressive, proportional and regressive

Correct Answer: Option D


Explanation:
Taxes are classified as progressive (rate rises with income), proportional (constant rate) or regressive (rate falls with income) according to their effect on income distribution.

This question belongs to: Economy GK Economy Set 1