Question

Difference between money paid to and money received from other nations in trade is called balance of trade.

Question 45 options:
True
False

Answer 1

false

Step-by-step explanation:

Answer 2

False

Step-by-step explanation:

This is a definition of Balance of Payment hence making this statement false. This is commonly confused since they almost sound the same. Here's the difference; Balance of payment is for recording all economic transactions of a country with other countries like inflow and outflow of foreign exchange, so basically money. Balance of trade on the other hand is the difference in the value of a country's imports and exports.