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

Question 31:

• JAMB 1998

The balance of visible trade is the difference between the values of?`

A. Imported and exported goods
B. Imported and exported services
C. Current account and capital account
D. Exchange rate of local and foreign currencies

Question 32:

• JAMB 1998

If a country has a balance of payments surplus on current account, this means that?

A. Total invisible export is greater than invisible import
B. The value of goods exported must be greater than the value of goods imported
C. There must be a positive balance of capital account
D. The aggregate of the balance of trade and the invisible balance must be positive

Question 33:

• JAMB 1999

De valuation helps in checking adverse balance of payments if the?

A. Demand for imports is elastic
B. Demand for imports is inelastic
C. Supply of exports is elastic
D. Demand for exports is inelastic

Question 34:

• JAMB 1999

Favorable terms of trade is important to a country because it facilities?

A. Economic prosperity for importers and exporters
B. Export of hard currency by the government
C. Economic prosperity for country
D. Import of hard currency by the government

Question 35:

• JAMB 2001

A country with over-valued currency will?

A. Expect balance of payments surplus
B. Have increased demand forthe exports
C. Increase her foreign reserve
D. Decreased her foreign reserve