Q. International Trade figures (in million dollars) of a country are given below:
Value of goods exported: 100
Value of goods imported: 120
Spending by citizens on foreign travel: 30
Services provided to foreign visitors: 10
What was the Balance of Payments (in million dollars) for this country?
(A) $20 million
(B) $40 million
(C) –$20 million
(D) –$40 million
The answer is: (D) –$40 million [Money In (100+10) – Money Out (120+30) = –40]