Balance of trade of a country is positive when:

The correct answer is Option 2: If the value of exports is more than the value of imports

NCERT: Balance of trade records the volume of goods and services imported as well as exported by a country to other countries. If the value of imports is more than the value of a country’s exports, the country has negative or unfavourable balance of trade. If the value of exports is more than the value of imports, then the country has a positive or favourable balance of trade.