A country's balance of payment is… | Economics

Question 1 Report

A country's balance of payment is deficit when

a country's payment for imports of visible goods are greater than her receipts from exports of visible goods

the total receipts from her exports of visible and invisible goods are greater than her payments for visible and invisible imports

it can record a surplus on current account of her balance of payment accounts

the total payment for visible and invisible imports are greater than the total receipts from her exports of visible and invisible goods

Answer Details

A country's balance of payment is deficit when its total payment for visible and invisible imports are greater than its total receipts from its exports of visible and invisible goods. In other words, the country is spending more on buying goods and services from other countries than it is earning from selling its own goods and services to other countries. This leads to a negative balance of payment, which indicates a deficit.

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Read lesson note on International Trade And Balance Of Payments (WAEC)

Economic Integration

International Trade And Balance Of Payments

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A country's balance of payment is deficit when

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