Question

A country with imports of $6 million and other cash of $3 million coming into the country and exports of $5 million and other cash of $3 million going out of the country has a

trade surplus.
trade deficit.
positive or favorable balance of payments.
negative or unfavorable balance of payments.

Answer 1

trade deficit.

Step-by-step explanation:

Given that

The imports is of $6 million

And, the other cash is $3 million coming in the country

There is $5 milllon exports

And, the other cash of $3 million going out

As we know that

If the imports is more than the exports so there would be trade deficit else trade surplus

Since the imports is $6 million and the exports is $5 million

So, it is a trade deficit