Explanation

a) Distinguish between domestic trade and external trade: Domestic trade is the exchange of goods and services within the borders of a country and involves the use of only one currency, ete. External trade is the exchange of goods and services across the borders of a country and involves the use of different currencies.

(b) Distinguish between terms of trade and balance of trade: Terms of trade is the rate at which a country's export is exchanged for its imports OR Terms of trade = \(\frac {\text {lndex of exports prices}} {\text {Index of import prices}}\) X 100

Balance of trade is the difference between the value ofa country's visible exports and its visible Imports over a time period.

(c) Outline four causes of balance of payments deficit in a country:

(i) Increased demand for foreign consumer goods due to high taste for foreign goods.

(ii) Demand for foreign capital goods due to rapid industrialization.

(iii) Unfavorable terms of trade because of falling commodity prices.

(iv) Decrease in the demand for local exports as a result of emergence of synthetic substitutes.

(v) Export of unprocessed primary products which attract lower prices in the world market.

(vi) Debt servicing due to borrowing from foreign lenders and inability to raise enough capital from domestic sources.

(vii) Transfer of capital abroad by foreign investors and citizens which lead to capital flight.

(viii) Large amount of payments for foreign invisible items e.g shipping. insurance. aviation and tourism expenditure on foreign missions

(ix) Increased expenditure on foreign mission

Correct Answer: B. quatrains

Correct Answer: D. 1984

Correct Answer: A. When the earth comes between the sun and the moon

Correct Answer: D. Justice Akinola Aguda

Correct Answer: A. socialist economy

Correct Answer: (d) Anaemia

Explanation

P1, Apollo Avenue, Bidhannagar,

< Delhi.

Dear Uncle,

I hope this letter of mine find you in good health. My parents and I all are fine. I am writing this letter actually because I need a little help from you.

As you know I always wanted to be an entrepreneur and have my own start up. So I have a business idea where I want to start a small venture in which I can sell fashionable garments and apparels online at reasonable rates. Though there are a lot of sites in this line, but my idea is unique as I want the makers of the products to sell them directly online and earn money rather than selling it through some middle man. For this I need a bit of financial support from you and I would be highly indebted to you if you could lend me an amount of two lacs rupees which I will definitely repay with interest once my endeavour kicks profits.

I really worked hard and want to make this dream of mine into reality and you are the only one who can help me do it. You always had faith in me and this time too I won

Correct Answer: B. witness value clarification

Correct Answer: B. speculative