What does economic transactions in Balance of Trade consist of?

The correct answer is Option 1: Visible items only

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. Thus BOT includes only visible items.