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WAEC Economics 2005 Question 41

Question 41

Balance of Payments and Exchange Rates

To improve the balance of payments position of West African countries, there must be

  1. A.removal of barriers to importation of goods and services
  2. B.increases rate of exportation of goods and services
  3. C.increased domestic consumption of foreign produced goods.
  4. D.the development of the local market.
Show the answer and explanation

Answer: B (increases rate of exportation of goods and services)

Explanation

More exports earn more foreign exchange and reduce the deficit.