question_answer

Distinguish between balance of trade and balance on current account of balance of payments.

Answer:

Basis of Different	Balance of Trade	Balance on Current Account
Meaning	It records visible transactions only	It records visible as well as invisible and unilateral
Components	It is the balance exports and imports of all physical goods of the country	It is the balance of visible trade invisible trade and unilateral transfers
Nature of transactions	It records the transactions relating to physical goods only.	It records the transactions relating to goods, services as well as unilateral transactions.