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Question
Distinguish between balance of trade and balance on current account?
Solution
| Basis of Difference | Balance of Trade | Balance on Current Account |
| 1. Meaning | Record of visible transactions | Record of the visible as well as invisible and unilateral transactions |
| 2. Components | Balance of exports and imports of all physical goods | Balance of visible trade, invisible trade and unilateral transfers |
| 3. Nature of transactions | Records the transactions relating to physical goods | Records the transactions relating to goods, services and unilateral transactions |
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