Question

In a hypothetical economy, the following data is given : S. No. Items Amount (in crores) (i) Merchandise Exports = 100 (ii) Merchandise Imports = 90 Tourism = 70 (iv) Net Remittances from abroad = (-) 20 The value of Balance on Current Account would be ______ crores.
a) 100
(b) 70
(c) 80
(d) 60​

Answer 1

Answer:

c 80

Explanation:

Answer 2

Given:

Merchandise export=100.

Merchandise imports=90.

tourism=70.

Net remittance from abroad= -20.

To find:

Value of balance on current account?

Solution:

The correct option is option (d).

The formula of current account=(export-import) + net income +net current transfer.

(100-90) + 70-20

=10+50

=60

Export refers to goods and services send to another country.

Import refers to goods and services received from another country.

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