A country's balance of payments is in deficit when

Economics

JAMB 2025

A. a country's payments for imports of invisible goods are greater than her receipts from exports of invisible goods
B. the total receipts from her export of visible and invisible goods are greater than her payments for visible and invisible imports
C. the total payments for visible and invisible imports are greater than the total receipts from her exports of visible and invisible goods
D. It can record a surplus on current account of her balance of payments accounts

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Correct Answer: Option C

Explanation

A country's balance of payments is in deficit when the total payments for visible and invisible imports are greater than the total
receipts from her exports of visible and invisible goods. The balance of payments is a record of all economic transactions between
the residents of a country and the rest of the world. It includes the trade of goods (visible) and services (invisible), as well as
financial transfers. When the value of what is imported (both goods and services) exceeds the value of what is exported, the
balance of payments is said to be in deficit.

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