Suppose the Balance of Trade of a nation exhibits a surplus of 20,000 crores. The import of merchandise of nation is half of exports of merchandise to rest of world. The value of exports will be
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This question was previously asked in
Shift 07/06/2023 3:30 PM - 6:30 PM
A
30,000 crores
B
40,000 crores
C
24,000 crores
D
35,000 crores
Correct Answer
40,000 crores
Detailed Explanation
Let's denote the value of exports as E and the value of imports as M. According to the informatThe balance of trade surplus is 20,000 crores. This means E−M=20,000.
The import of merchandise is half of the exports of merchandise. Therefore, M=0.5E.
Substitute M from the second equation into the first equation:
E−0.5E = 20,000
0.5E=20,000
E=40,000
Hence, the value of exports is 40,000 crores. Thus, the correct answer is 40,000 crores, as given in option (2).
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