Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Open Economy Macro Economics

Question:

If  Balance of Trade is (-) ₹600 crore and value of exports is ₹500 crore, then the  value of imports will be.

Options:

₹1500 crore

₹1100 crore

₹100 crore

₹2200 crore

Correct Answer:

₹1100 crore

Explanation:

The correct answer is option (2) : ₹1100 crore

BoT=ExportsImports

Given:

  • Balance of Trade (BoT) = ₹ -600 crore (negative indicates trade deficit)
  • Value of Exports = ₹ 500 crore

To find the value of Imports:

−600=500−Imports

Imports=500+600

Imports=1100