State whether the following statements are true or false. Give reasons for your answer

cbse-class-12

#1

State whether the following statements are true or false. Give reasons for your answer.
(i) Difference between value of exports and-imports of goods and services are called Balance of Trade.
(ii) External assistance is not recorded in Balance of Payments account.


#2

(i) False, because Balance of Trade only records the export and import of visible items, i.e. goods.
(ii) False, because external assistance are unilateral receipts which are included in the current account of Balance of Payments.