Explanation:

Correct Option: (b) Explanation:  Option (b) is correct CAD & BoT  Current Account De fi cit (CAD) and Balance of Trade are both concepts used to measure a country’s trade performance, but they have slightly different meanings and implications.  The Balance of Trade (BoT) is a measure of a country’s total exports of goods and services minus its total imports of goods and services over a given period, usually a year. It is sometimes referred to as the “trade balance.” A positive balance of trade means that a country exports more than it imports, while a negative balance of trade means that a country imports more than it exports.  The Current Account (CA) is a broader measure that includes not only the balance of trade in goods and services, but also other transactions such as income received from investments abroad, transfers of money between countries, and unilateral transfers such as aid and remittances. The current account can be in surplus or de fi cit, depending on whether a country is earning more from foreign sources than it is paying out or vice versa.  For instance, if an Indian receives rental income from his property in UK, it will be measured in Current Account but not in Balance of Trade.  The capital account, on the other hand, records all international transactions related to the purchase and sale of assets. It includes transactions such as the purchase of foreign assets by domestic investors and the purchase of domestic assets by foreign investors. The capital account balance re fl ects the difference between the total in fl ow and out fl ow of capital in a country.