Multiple choice

The difference between the export and import of services is called

  1. Balance of Trade

  2. Balance of Invisibles

  3. Balance of Current account

  4. Balance of Capital account
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B Correct answer
Explanation

Balance of Invisibles specifically refers to trade in services (and other intangible items like transfers) as opposed to Balance of Trade which covers only visible merchandise goods. Services are called 'invisibles' because they are intangible and don't involve physical goods crossing borders.

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