Question 18 of 26
Q.Balance of Trade and Balance of Payment are two different concepts.
(a) Agree
(b) Disagree
Maharashtra MsbshseMaharashtra HSC (MSBSHSE) Board 2023MCQ· 4mImportance★★★★★
69% · 18/26 Questions
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Start your 14-day free trial to unlock the full solution →Agree. Balance of trade covers only visible goods (exports minus imports of merchandise), whereas balance of payments records ALL international transactions — visible goods, invisible services, and capital flows. BOT is only one part of the BOP, so the two are distinct.
The statement is correct and must be agreed with, because the two terms differ in scope and content.
| Basis | Balance of Trade (BOT) | Balance of Payments (BOP) |
|---|---|---|
| Meaning | Difference between value of visible exports and visible imports of goods | Systematic record of all economic transactions (visible, invisible, capital) with the rest of the world |
| Scope | Narrow — only merchandise (goods) | Wide — goods, services and capital transfers |
| Items | Only visible items | Visible + invisible + capital account items |
| Relationship | It is one part (current-account item) of the BOP | It includes the BOT |
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