Exercises · Q4
Q.Distinguish between Balance of Trade and Balance of Payments.
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Start your 14-day free trial to unlock the full solution →| Basis | Balance of Trade | Balance of Payments |
|---|---|---|
| Scope | Visible items (goods) only | Visible + invisible items + capital transactions |
| Nature | Narrower | Wider, comprehensive |
| Structure | Single figure | Current + Capital + Official Reserve Accounts |
| Balances overall? | No — can be genuinely in deficit or surplus | Yes — always balances in a double-entry accounting sense |
| Relationship | Is a part (the visible-trade line) of the Current Account | Is the larger statement that includes BOT within it |
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