Question 16 of 26
Q.State with reasons whether you agree or disagree with the following statement.
The balance of Payment is the same as the Balance of Trade.
(a) Agree
(b) Disagree
Maharashtra MsbshseMaharashtra HSC (MSBSHSE) Board 2022MCQ· 4mImportance★★★★★
62% · 16/26 Questions
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Start your 14-day free trial to unlock the full solution →Disagree — balance of trade covers only visible goods, while balance of payments covers goods, services and capital, so BOP is much wider.
Though the two terms are related, they are not identical. The balance of payments is a broad concept and the balance of trade is only one part of it.
| Point | Balance of Trade (BOT) | Balance of Payments (BOP) |
|---|---|---|
| Meaning | Difference between value of exports and imports of visible goods | Record of all economic transactions with the rest of the world |
| Scope | Narrow — only visible (merchandise) trade | Wide — visible goods, invisible services, and capital transfers |
| Inclusion | Part of BOP (the current account's goods portion) | Includes BOT plus services and capital account |
| Balancing | May show a surplus or deficit | Always balances in the accounting sense |
| … |
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