A surplus in the balance of payment should be used to

Assessment: WAEC SSCE - Economics - 2004 (Objective) Subject: Economics

Question 1 Report

A surplus in the balance of payment should be used to
Answer Details
A surplus in the balance of payment occurs when a country's exports are greater than its imports, resulting in more foreign currency coming into the country than leaving it. To utilize this surplus, the country can invest the excess funds in a variety of ways, including buying foreign assets such as stocks and bonds, building up its foreign currency reserves, investing in infrastructure development within the country, or providing aid and grants to other countries. The decision on how to use the surplus will depend on the country's economic priorities and goals.

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