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  1. The exchange of commodities between two countries is referred as
    1. Balance of trade
    2. Bilateral trade
    3. Volume of trade
    4. Multilateral trade
Correct Option: B

Trade between two traders is called bilateral trade, while trade between more than two traders is called multilateral trade. Bilateral trade or clearing trade is trade exclusively between two states, particularly, barter trade based on bilateral deals between governments, and without using hard currency for payment. Bilateral trade agreements often aim to keep trade deficits at minimum by keeping a clearing account where deficit would accumulate.



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