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JAMB Economics 1978 Question 9

Question 9

Balance of Payments and Exchange Rates

Which is an example of an invisible item in the Trade Account of Ghana?

  1. A.Export of cocoa from Ghana
  2. B.Import of oil from Nigeria
  3. C.A gift of a Peugeot 504 by a firm in Nigeria to another firm in Ghana
  4. D.Payment for shipping and insurance by a Ghanaian company to companies outside Ghana
  5. E.None of the above.
Show the answer and explanation

Answer: D (Payment for shipping and insurance by a Ghanaian company to companies outside Ghana)

Explanation

Invisible items are services such as shipping and insurance; cocoa, oil and cars are physical goods (visibles).