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

Question 21:

• JAMB 1988

Which of the following is a good example of invisible item on balance of payments account?

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

Question 22:

• JAMB 1989

By using exchange controls, a country tries to eliminate a balance of payments deficit by?

A. Limiting her imports to its currency value of exports
B. Reducing the nation's domestic price level
C. Limiting her exports to its currency value of imports
D. Overvaluing the country's currency

Question 23:

• JAMB 1989

The amount, N4.08 million, shown as balance in the table represents

A. Terms of payments
B. Balance on current accounts
C. Balance of trade
D. Terms of trade

Question 24:

• JAMB 1990

Which of the following is likely to reduce a surplus in the balance of payments of a country?

A. Devaluation
B. Increased tariff on imports
C. Export promotion
D. Currency appreciation

Question 25:

• JAMB 1992

If a country has a balance of payment crisis, which of the following measures can best bring about a improvement in the short run?

A. Large-scale importation of foreign goods
B. Investment in capital market abroad
C. Large-scale export of locally made abroad
D. Repayment of debt to her creditors