Match List-I with List-II
| List-I | List-II | ||
| A. | Transaction between resident and rest of the world | I. | Budget |
| B. | Revenue and Expenditure | II. | Balance of Trade |
| C. | Export and Import | III. | Foreign Exchange |
| D. | Price of one currency in terms of another | IV. | Balance of Payments |
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → A-IV, B-I, C-II, D-III
The balance of payments records all dealings with the rest of the world; the balance of trade is only its part for goods.
| List-I | List-II | Reason |
|---|---|---|
| A. Transaction between resident and rest of the world | IV. Balance of Payments | The balance of payments records the transactions in goods, services and assets between residents of a country and the rest of the world. |
| B. Revenue and Expenditure | I. Budget | The government budget is a statement of the government’s estimated receipts and expenditures for every financial year. |
| C. Export and Import | II. Balance of Trade | The balance of trade is the difference between the value of exports and imports of goods. |
| D. Price of one currency in terms of another | III. Foreign Exchange | The foreign exchange rate is the price of one currency in terms of another. |
NCERT (2026-27): “…The price of one currency in terms of another currency is known as the foreign exchange rate or simply the exchange rate. We will discuss this in detail in section 6.2. 6.1 The Balance of Payments The balance of payments (BoP) record the transactions in goods, services and assets between residents of a country with the rest of the world for a specified time period typically a year. There are two main accounts in the BoP – the current account and the capital account.… …Balance of Trade (BOT) is the difference between the value of exports and value of imports of goods of a country in a given period of time. Export of goods is entered as a credit item in BOT, whereas import of goods is entered as a debit item in BOT. It is also known as Trade Balance.…” NCERT (2026-27), chapter ‘Government Budget and the Economy’: “5.1 Government Budget – Meaning and its Components There is a constitutional requirement in India (Article 112) to present before the Parliament a statement of estimated receipts and expenditures of the government in respect of every financial year which runs from 1 April to 31 March. This ‘Annual Financial Statement’ constitutes the main budget document of the government.…” |