Economic Awareness - Sectors of Indian Economy
Which of the following best describes the trade balance in the context of the external sector?
Which of the following best describes the trade balance in the context of the external sector?
medium Q14 of 15
Step-by-Step Solution
Step 1: Understand trade balance definition
Trade balance is the difference between the value of exports and imports of goods and services in the external sector.Step 2: Evaluate options
Only the difference between exports and imports defines trade balance. Other options relate to capital flows or reserves.Final Answer:
Difference between exports and imports of goods and services → Option AQuick Check:
Trade balance = exports minus imports ✅
Quick Trick: Trade balance = exports - imports.
Common Mistakes:
MISTAKES- Confusing trade balance with capital flows or reserves.
Master "Sectors of Indian Economy" in Economic Awareness
Start learning the concept with an interactive lesson.
Want More Practice?
15+ quiz questions · All difficulty levels · Free
Free Signup - Practice All QuestionsMore Economic Awareness Quizzes