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JAMB Economics 2012 Question 47

Question 47

Balance of Payments and Exchange Rates

A deficit balance of payments is measured by subtracting the debits from the credits in the

  1. A.current account
  2. B.current and capital accounts
  3. C.current and escrow accounts
  4. D.capital and escrow accounts.
Show the answer and explanation

Answer: B (current and capital accounts)

Explanation

The overall balance is found from both the current and capital accounts; if debits exceed credits there is a deficit.