Read the two statements and choose the correct option.
I. The balance of trade is a wider concept than the current account balance.
II. A trade surplus means exports of goods exceed imports of goods.

Only ICorrect answerYour answerOnly IICorrect answerYour answerBoth I and IICorrect answerYour answerNeither I nor IICorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer B

Correct answer: B

The current account includes the balance of trade and more, so it is the wider one. I is false.
II is the definition of a trade surplus.

Ten questions from Balance of Payments, at your own pace.

Ten questions from Balance of Payments, at your own pace.

Read the two statements and choose the correct option.I. The balance of trade is a wider concept than the current account balance.II. A trade surplus means exports of goods exceed imports of goods.