Assertion (A): Balance of Payments represents a better picture of a country’s economic transactions with the rest of the world than the Balance of Trade.. Reason (R): Balance of Payments takes into account the exchange of both visible and invisible items whereas Balance of Trade does not.
Options
(a)Both (A) and (R) are individually true and R is the correct explanation of A
(b)Both (A) and (R) are individually true and R is not the correct explanation of A
(c)A is true but R is false
(d)A is false but R is true
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Class 12Open Economy Macroeconomics— NCERT Economics, Chapter 6. An open economy trades goods and services and financial assets with the rest of the world; imports are a leakage from, and exports an injection into, the circular flow.…
Class 12International Trade— NCERT Geography, Chapter 8. International trade is the exchange of goods and services across national boundaries; countries trade for what they cannot make or can buy cheaper elsewhere. It began…
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