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Match the items of List-I with the items of List-II and choose the correct answer from the codes given…

Balance of Trade is the record of the value of exports and imports of visible items (merchandise goods) of a country ((a)-(iv)). The Current Account covers imports and…

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Match the items of List-I with the items of List-II and choose the correct answer from the codes given below :

List-I List-II
(a) Balance of Trade (i) Imports and exports of goods and services, unilateral transfers and factor incomes from abroad.
(b) Current Account (ii) Transaction relating to changes in financial assets and liabilities of a country.
(c) Balance of Payments (iii) Record of all economic transactions between a country's residents and residents of other countries.
(d) Capital Account (iv) Value of exports and imports of visible items of a country.

Codes : ((a), (b), (c), (d))

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Answer and explanation

Correct answer A

Balance of Trade is the record of the value of exports and imports of visible items (merchandise goods) of a country ((a)-(iv)). The Current Account covers imports and exports of goods and services, factor incomes from abroad, and unilateral transfers ((b)-(i)). Balance of Payments is the complete record of all economic transactions between a country's residents and the residents of other countries ((c)-(iii)). In traditional broad usage, the capital account records transactions relating to changes in the financial assets and liabilities of a country ((d)-(ii)).

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