Discussion
Select your answer from the codes given below :
Assertion (A) : Balance of trade records the volume of goods and services imported as well as exported by a country to other countries.
Reason (R) : If the value of exports is more than the value of imports, the country has a negative balance of trade.
Answer: C
The answer is (A) is true but (R) is false.
Assertion (A) is the textbook definition: the balance of trade records the volume of goods and services a country imports and exports with other countries over a period.
Reason (R) has the sign reversed. If the value of exports is more than the value of imports, the country has a positive (favourable) balance of trade, a surplus. A negative balance, a deficit, is when imports exceed exports. So (R) is false, and the options calling it true are wrong.
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