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Question
State whether the following statement is true or false.
The difference between a country's exports and imports is termed as net earnings from foreign transactions.
Options
True
False
MCQ
True or False
Solution
True. Net earnings from foreign transactions of a country refers to the difference between the demand for domestically produced goods and services by the rest of the world (exports) and the demand for goods and services produced abroad by the residents of that country. In other words, it is the difference between the exports and imports. That is,
Net earnings from foreign transactions = Total exports – Total imports
shaalaa.com
Difference Betweeen Export and Import
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