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JAMB Economics 1994 Question 48

Question 48

Balance of Payments and Exchange Rates

In international trade, shipping and other freight charges are treated as

  1. A.invisible items
  2. B.unilateral transfers
  3. C.capital transactions
  4. D.autonomous capital transactions
Show the answer and explanation

Answer: A (invisible items)

Explanation

Shipping and freight are services, not goods, so they are invisible items.