Question

______ is the difference between the values of exports and imports of goods of a country. 

Options

• Balance of trade

• Current account balance

• Both balance of trade and current account balance

• None of the above

Answer 1

Both balances of trade and current account balance is the difference between the values of exports and imports of goods of a country. 

Explanation:

It is the difference between the value of a country's exports and imports of goods. It only keeps track of transactions involving visible items (i.e. products).