Suppose the Balance of Trade of a nation exhibits a surplus of 20,000 crores. The import of merchandise of nation is half of exports of merchandise to rest of world. The value of exports will be

40,000 crores

The correct answer from the options (2) : 40,000 crores

Let's denote the value of exports as E and the value of imports as M. According to the Informat. The balance of trade surplus is 20,000 crores. This means $E-M=20,000.$

The import of merchandise is half of the exports of merchandise. Therefore,

M=0.5E.

Substitute M from the second equation into the first equation:

$E-0.5E=20,000$

$0.5E=20,000$

$E=40,000$

Hence, the value of exports is 40,000 crores Thus, the correct answer is 40,000 crores, as given in option (2).