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JAMB Economics 1981 Question 36

Question 36

Balance of Payments and Exchange Rates

Which of the following is NOT a visible item on international trade payments?

  1. A.Payments for imported cars
  2. B.Receipts from cocoa exports
  3. C.Payments to foreign shipping companies
  4. D.Payments for steel imports
  5. E.Payments for petroleum imports.
Show the answer and explanation

Answer: C (Payments to foreign shipping companies)

Explanation

Shipping is a service, so payments to foreign shipping companies are invisible items.