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A country's balance of payment is deficit when

Economics
WAEC 2010

A country's balance of payment is deficit when

  • A. a country's payment for imports of visible goods are greater than her receipts from exports of visible goods
  • B. the total receipts from her exports of visible and invisible goods are greater than her payments for visible and invisible imports
  • C. it can record a surplus on current account of her balance of payment accounts
  • D. the total payment for visible and invisible imports are greater than the total receipts from her exports of visible and invisible goods
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Correct Answer: Option D
Explanation

A balance of payments deficit means the country imports more goods, services, and capital than they export. These goods and services could be visible or invisible.


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