Balance of trade and balance of payments - Jamb Economics Past Questions and Answers

Question 46:

• JAMB 2020

Which of the following is an example of an invisible item on the balance of payments account

A. Shipping and aviation
B. Exports and imports
C. Merchandise
D. Bullion

Question 47:

• JAMB 2021

When a nation's exports are greater than its imports, ____________

A. The net foreign trade is zero
B. A favourable balance of trade exists
C. A favourable balance of payment exists
D. An unfavourable balance of trade exists

Question 48:

• JAMB 2021

Surplus in balance of payments leads to ____________

A. Government budget surplus
B. Increase in foreign reserves
C. Decrease in foreign reserves
D. None of the above