Question

The difference between a country's exports and imports is termed as net earnings from foreign transactions. (State whether the statement is TRUE or FALSE)

Answer 1

$\large{\mathfrak{Answer -}}$

The statement is $\textbf{\underline{False.}}$

The difference between a country's exports and imports is termed as $\textbf{\underline{Balance of Trade.}}$

Answer 2

• The above statement is FALSE.

• Because the difference between a country's exports and imports is termed as the balance of trade.

• It can be measured by the flow of exports and imports of a given time period.

•If exports of a country are more than it's imports it is called a positive trade balance.

• If exports of a country are less than it's imports it is called a negative trade balance.

• Balance of trade is the largest element of a nation's balance of payments.