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Question : 14
Total: 19
Define "Trade surplus". How is it different from "Current account surplus"?
Solution:
Trade surplus refers to excess of value of exports of visible items over the value of import of visible items in the balance of payment account of a country. Current account surplus refers to excess of receipts from value of export of visible items, invisible items and unilateral transfers over payment of value of import of visible items, invisible items and unilateral transfers. It is a broader concept as compared to trade surplus.
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