Consider the following statements. 1. The monetary difference of the ...
Statement 1: The monetary difference of the total export and import of an economy in one financial year is called trade balance.
This statement is correct. Trade balance refers to the difference between the total value of goods and services exported and imported by a country during a specific period, usually a financial year. If the value of exports is higher than imports, it results in a trade surplus, whereas if imports exceed exports, it leads to a trade deficit.
Statement 2: The economic policy which regulates the export-import activities of any economy is known as the trade policy.
This statement is correct. Trade policy refers to the set of rules, regulations, and measures implemented by a government to manage and control the import and export activities of a country. It includes various measures such as tariffs, quotas, subsidies, and trade agreements aimed at promoting or protecting domestic industries, ensuring fair trade practices, and maintaining a favorable balance of trade.
Statement 3: The monetary policy which governs the exports of any economy is known as Exim Policy.
This statement is incorrect. Exim Policy, also known as the Export-Import Policy, is a set of guidelines and regulations formulated by the government to promote and regulate the foreign trade of a country. It encompasses various aspects such as export promotion, import regulations, trade facilitation, and exchange rate policies. However, monetary policy refers to the measures taken by the central bank of a country to control the money supply, interest rates, and inflation, with the aim of achieving price stability and economic growth.
Therefore, the correct statements are 1 and 2 only, which means option 'A' is the correct answer. Trade balance refers to the difference between exports and imports, while trade policy regulates export-import activities.
Consider the following statements. 1. The monetary difference of the ...
- TRADE BALANCE: The monetary difference between the total export and import of an economy in one financial year is called trade balance. It might be positive or negative, known to be either favourable or unfavourable, respectively to the economy.
- TRADE POLICY: Broadly speaking, the economic policy which regulates the export-import activities of any economy is known as the trade policy. It is also called the foreign trade policy or the Exim Policy. This policy needs regular modifications depending upon the economic policies of the economies of the World or the trading partners.