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The balance of trade shows a deficit of ₹5,000 crores and the value of imports are ₹9,000 crores. What is the value of exports? -

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Question

The balance of trade shows a deficit of ₹5,000 crores and the value of imports are ₹9,000 crores. What is the value of exports?

Options

  • ₹5,000 crores

  • ₹4,000 crores

  • ₹3,000 crores 

  • ₹1,000 crores 

MCQ

Solution

₹4,000 crores

Explanation:

Balance of Trade = -₹5,000 crores

Value of Imports = ₹9,000 crores

Balance of Trade (Deficit) = Value of Exports - Imports

Value of Exports = Balance of Trade (Deficit) + Imports = -₹5,000 crores + ₹9,000 crores = ₹4,000 crores

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Balance of Payments - Balance of Payments Surplus and Deficit
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