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JAMB Economics 1990 Question 38

Question 38

Balance of Payments and Exchange Rates

Balance of trade is the difference between

  1. A.exports and imports of goods and services
  2. B.capital inflows and capital outflows
  3. C.visible and invisible balances
  4. D.exports and imports of goods
Show the answer and explanation

Answer: D (exports and imports of goods)

Explanation

The balance of trade covers only visible items: the value of goods exported minus goods imported.