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

Question 36:

• JAMB 2002

One way of correcting the balance of payments problem of a country is to?

A. Introduce import-promotion measures
B. Buy investments abroad
C. Devalue the currency
D. De-emphasize import-substitution industries

Question 37:

• JAMB 2003

The effectiveness of devaluation as a solution to a balance of payments problem depends on the

A. Value of visible and invisible goods
B. Value of invisible items of both domestic and foreign trades
C. Relative elasticities of demand and supply of imports and exports
D. Foreign investments of businessmen

Question 38:

• JAMB 2004

The difference between payments and receipts for visible trade is called

A. Bilateral trade
B. Current balance
C. Balance of payments
D. Balance of trade

Question 39:

• JAMB 2005

The price index computed between two time periods is given as 128%,This implies that the

A. Disposable income have increased by 28%
B. Living standards have fallen by 128%
C. Living standards have risen by 128%
D. Living standards have fallen by 28%

Question 40:

• JAMB 2005

A long-term capital outflow is recorded in the balance of payment as a

A. Credit on the capital account
B. Credit on the current account
C. Debit on the current account
D. Debit on the capital account