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Question : The balance of trade is a part of which account in the Balance of Payments?

Option 1: Current Account

Option 2: Capital Account

Option 3: Financial Account

Option 4: Reserve Account


Team Careers360 21st Jan, 2024
Answer (1)
Team Careers360 23rd Jan, 2024

Correct Answer: Current Account


Solution : The correct answer is a) Current Account.

The balance of trade is a part of the Current Account in the Balance of Payments. The balance of trade specifically refers to the difference between the value of a country's exports and the value of its imports of goods and services. It is a key component of the Current Account, which records the trade in goods, services, income from investments, and unilateral transfers.

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