Distinguish Between Balance of Trade and Balance on Current Account? - Economics


Distinguish between balance of trade and balance on current account?



Basis of Difference Balance of Trade Balance on Current Account
1. Meaning Record of visible transactions Record of the visible as well as invisible and unilateral transactions
2. Components Balance of exports and imports of all physical goods Balance of visible trade, invisible trade and unilateral transfers
3. Nature of transactions Records the transactions relating to physical goods Records the transactions relating to goods, services and unilateral transactions
Concept: Balance of Trade
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2012-2013 (March) Delhi Set 1


Give meaning of balance of trade.

Differentiate between balance of trade and current account balance.

The Balance of Payments councils consists of ______.

Foreign capital long- term loan and foreign currency reserve are recorded under ______.

What do you mean by Balance of trade?

What is the composition of private capital?

Mention the components of banking capital.

Mention the components of official capital.

What are the credit items shown in currents accounts?

State the components of capital account.

Write down the structure of capital account

Highlight the features of balance of trade.

In which of the following categories are economic transactions of balance of trade recorded?

Trade of visible items between the countries is known as ______.

When the import and export of visible items are equal, the situation is known as ______.

When there is a favourable balance of trade?

Balance of trade is measured as ______.

If balance of trade is (-) Rs. 600 crore and value of exports is Rs. 500 crore then the value of imports will be ______.

Read the following statements -Assertion (A) and Reason(R), choose one of the correct alternatives given below:

Assertion (A): Trade of invisible items between two nations is a part of capital account of Balance of Payment

Reason(R): Transactions that affect the asset-liability status of a country in relation to the rest of the world are known as Capital Account transactions.

Suppose that the Balance of Trade (BOT) of a nation, exhibits a surplus of ₹ 20,000 crores. The import of merchandise of the nation is half of the exports of merchandise to the rest of the world.
The value of exports would be ₹ ____________ crores.

Read the following statements - Assertion (A) and Reason(R), Choose one of the correct alternatives given below:

Assertion (A): If the receipts and payments on the current account are equal to each other, it depicts a situation of Current Account Surplus.

Reason (R): A surplus current account means that the nation is a lender to other countries and a deficit current account means that the nation is a borrower from other countries.

Suppose, following data is presented, for an imaginary economy:

Year   Visible Exports Visible Imports
2010 280 240
2020 580 460

Identify, which of the statement about the period 2010 to 2020 is correct?

Assuming that, the following data is given for an imaginary economy:

Year → 2020
(₹ in Cr.)
(₹ in Cr.)
Items ↓
Exports of visibles 1,000 1,100
Imports of visibles 800 850

The balance of Trade from 2020 to 2021 ______ by ₹ ______ crore.


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