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WAEC Economics 2013 Question 7

Question 7

Balance of Payments and Exchange Rates

In the balance of payments of a country, tourism is classified under

  1. A.capital account.
  2. B.invisible trade.
  3. C.merchandise trade.
  4. D.official reserves.
Show the answer and explanation

Answer: B (invisible trade.)

Explanation

Tourism is a service, so it is part of invisible trade in the current account.