Statement I: Our balance of trade is part of our current account balance.
Statement II: Our balance of payments is part of our balance of trade.

Question

Quizplus · Accepted Answer

Statement I is true because balance of trade is a component of the current account balance, which also includes services, income, and transfers. 
Statement II is false because the balance of payments includes both the current account balance (which includes balance of trade) and the capital account balance. Therefore, the balance of trade is only a part of the balance of payments, not the other way around.

Statement I: Our Balance of Trade Is Part of Our