Question

If in an economy the Balance of Trade is showing a deficit of Rs.200 crore and the value of import is Rs.900 crore, then the value of exports would be Rs. _____ crore. (Fill up the blank with the correct alternative.)

• A. 200
• B. 1100
• C. 700
• D. 900

Hint:

The Balance of Trade deficit is calculated as exports minus imports. If imports exceed exports, the balance shows a deficit.

Answer 1

The Correct Option is C

- The Balance of Trade (BOT) is calculated as Exports - Imports.
- Given that BOT = Rs.-200 crore and Imports = Rs.900 crore, we can use the formula: \[ {Exports} - {Imports} = {BOT} \] Substituting the values: \[ {Exports} - 900 = -200 \] Solving for Exports: \[ {Exports} = 700 \] Conclusion: The value of exports required to maintain a balance of trade deficit of Rs.200 crore is Rs.700 crore.