AI-generated practice question — model-generated for extra practice, not a previous-year CBSE board question.
(c) Favourable balance of trade
When a country's exports exceed its imports, it is called a favourable balance of trade.
Source: International Trade, Chapter 7
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The passage directly states: "When the value of export exceeds the value of imports, it is called a favourable balance of trade." Option (a) and (b) are opposites (imports > exports). Option (d) is not the correct term used in the textbook. Always quote the textbook definition in MCQ justification if asked.