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Question
Assuming that, the following data is given for an imaginary economy:
| Year → | 2020 (₹ in Cr.) |
2021 (₹ in Cr.) |
| Items ↓ | ||
| Exports of visibles | 1,000 | 1,100 |
| Imports of visibles | 800 | 850 |
The balance of Trade from 2020 to 2021 ______ by ₹ ______ crore.
Options
increased, 200
increased, 50
decreased, 200
decreased, 50
Solution
The balance of Trade from 2020 to 2021 increased by ₹ 50 crore.
Explanation:
Balance of Trade (BOT) = Export of Visibles − Import of Visibles
BOT (2020) = 1,000 − 800 = 200 crores
BOT (2021) = 1,100 − 850 = 250 crores
BOT has increased from 50 crores from 2020 to 2021.
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