Question:medium
Suppose, the Balance of Trade of an imaginary economy shows a favorable balance of ₹ 500 crore. The values of merchandise exports are ₹ 1200 crore and transfer payments are ₹ 400 crore. The value of merchandise imports would be ₹ ______ .
Suppose, the Balance of Trade of an imaginary economy shows a favorable balance of ₹ 500 crore. The values of merchandise exports are ₹ 1200 crore and transfer payments are ₹ 400 crore. The value of merchandise imports would be ₹ ______ .
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For Balance of Trade, always subtract imports from exports to calculate the trade balance or vice versa.
Updated On: Jan 13, 2026
- 1700
- 1500
- 700
- 900
Show Solution
The Correct Option is C
Solution and Explanation
The Balance of Trade (BOT) is determined by subtracting Imports from Exports, as shown: \[\text{Exports} - \text{Imports} = \text{Balance of Trade}\]With the provided figures, the equation becomes: \[1200 - \text{Imports} = 500\]Solving for Imports yields: \[\text{Imports} = 1200 - 500 = 700\]
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