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

Question 16:

• JAMB 1982

In Nigeria, a balance of payments deficit can be solved by all of the following EXECPT?

A. Imposing import bans on some commodity
B. Imposing import duties
C. Drawing down on external reserves
D. Purchasing foreign exchanges from foreign countries
E. Devaluation of the currency

Question 17:

• JAMB 1983

Disequilibrium in the balance of payment means?

A. Imports of the country exceeding its exports
B. Overall deficit or surplus in the current account and capital account of the balance of payment
C. Capital flowing out of the country exceeds the capital flowing into the country
D. Deficit in the trade balance
E. Export earnings exceeds cost of imports

Question 18:

• JAMB 1984

Which of the following items does NOT belong to a country's current account in the balance of payments accounts?

A. Merchandise exports
B. Merchandise import
C. Travel
D. Foreign currencies
E. Insurance services

Question 19:

• JAMB 1986

Balance of payment deficit in Nigeria CANNOT be solved by

A. Importing more goods and services
B. Devaluation of the currency
C. Imposing import duties
D. Imposing import bans on some commodities

Question 20:

• JAMB 1988

When a nation is experiencing balance of payment surplus, it is in a better position to?

A. Increase its foreign exchange reserves
B. Increase its liabilities to foreigners
C. Reduce its foreign exchange reserves
D. Devalue its national currency