Railway Recruitment Board General Awareness — Question 1648

Question

A country's balance of trade is said to be unfavourable when:

  1. exports exceed imports
  2. imports exceed exports
  3. exports equal imports
  4. the country has no foreign reserves

Correct answer

B — imports exceed exports

Explanation (English)

An unfavourable (adverse) balance of trade occurs when the value of imports exceeds the value of exports.

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