Match List-I with List-II:List-IList-II(A)Balance of trade(I)Exports…

Match List-I with List-II:

List-I		List-II
(A)	Balance of trade	(I)	Exports of goods are more than imports of goods
(B)	Net invisibles	(II)	Difference between the value of exports and imports of invisibles
(C)	Trade surplus	(III)	Difference between the value of exports and imports of goods
(D)	Balance on current account	(IV)	Balance of trade plus balance on invisibles

Choose the correct answer from the options given below:

Answer & explanation

Correct answer: option 2

The correct answer is Option (2) → (A) - (III), (B) - (II), (C) - (I), (D) - (IV)

The current account balance is built from two parts: trade in goods and trade in invisibles.

List-I	List-II	Reason
(A) Balance of trade	(III) Difference between the value of exports and imports of goods	BOT covers goods only.
(B) Net invisibles	(II) Difference between the value of exports and imports of invisibles	Invisibles are services, transfers and income flows.
(C) Trade surplus	(I) Exports of goods are more than imports of goods	A surplus BOT arises when goods exported exceed goods imported.
(D) Balance on current account	(IV) Balance of trade plus balance on invisibles	These are the two components of the current account balance.

NCERT (2026-27): “Balance on Current 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. BOT is said to be in balance when exports of goods are equal to the imports of goods. Surplus BOT or Trade surplus will arise if country exports more goods than what it imports. Whereas, Deficit BOT or Trade deficit will arise if a country imports more goods than what it exports.”

“… Net Invisibles is the difference between the value of exports and value of imports of invisibles of a country in a given period of time. …”