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11th Standard English Medium Commerce Subject Balance of Trade and Balance of Payments Creative 2 Mark Questions with Solution Part - I updated Creative Questions

Published on: 13/05/2022

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chapter: - Creative Questions

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Questions:

Generic 2

5 x 2 = 10

What are the four components of Balance of Payments?

What are invisible items?

What are visible Exports and Imports?

What is unfavourable Balance of Trade?

What is favourable Balance of Trade?

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Answers Key:

Generic 2

5 x 2 = 10

(i) Current Account
(ii) Capital Account
(iii) Unilateral Payment Account
(iv) Official Reserves Assets Account.

(i) The invisible items are those which are not recorded at the ports.
(ii) These items include shipping, insurance, debt repayment, payment of interest, expenditure by tourists; etc.

The visible Exports and Imports are those which are actually recorded in. the port. It gives rise to International payments.

When the money value of Imports is greater than the money value of Exports, it is called unfavourable balance of Trade.

When the money value of Export is greater than the money value of Imports it is called favourable Balance of Trade.