A favorable balance of trade occurs when the value of:
A)imports equal the value of exports.
B)the cash inflows equal the value of the cash outflows.
C)imports is less than the value of exports.
D)the dollar is greater than the value of the Euro.

Question

Quizplus · Accepted Answer

A favorable balance of trade occurs when a country exports more than it imports, which means that C is the correct choice since it states that imports are less than the value of exports. A is incorrect because that would indicate a balanced trade, whereas B is too generic and does not explicitly mention exports and imports. D is irrelevant to a favorable balance of trade.

A Favorable Balance of Trade Occurs When the Value Of