Question

Exports =Rs 1000 lakh ,imports = RS 1650 lakh, balance of trade shows:

(1 Point)

Surplus of Rs 650 lakh

Deficit of Rs 650 lakh

Balance of Rs 2650 lakh

None of these​

Answer 1

Balance of Rs. 2,650 lakh

Answer 2

The balance of trade shows a deficit of Rs. 650 lakh.

Given:

value of exports = Rs. 1000 lakh

value of imports = 1650 lakh

To Find:

we need to find the value of the balance of trade

Solution:

the balance of trade is also known as net exports

thus, balance of trade = exports - imports

substituting the values into the formula we get-

balance of trade = 1000 - 1650 = -650

the negative sign implies that there is a deficit as imports are greater than exports.

Thus, the balance of trade shows a deficit of Rs. 650 lakh.

#SPJ3