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JAMB Economics 1978 Question 13

Question 13

Balance of Payments and Exchange Rates

A country has a surplus in its balance of visible trade if

  1. A.the value of imports exceeds the value of exports of goods
  2. B.the value of exports exceeds the value of imports of goods
  3. C.the value of goods exported is equal to the value of goods imported
  4. D.it is able to spend a lot on capital programmes
  5. E.commercial banks' assets increase.
Show the answer and explanation

Answer: B (the value of exports exceeds the value of imports of goods)

Explanation

Visible trade is trade in goods; a surplus means the value of goods exported is greater than the value of goods imported.