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JAMB Commerce 2007 Objective — Question 46

Question 46 of 50 from the Joint Admissions and Matriculation Board (JAMB) Commerce 2007 Objective paper, with the correct answer and a full explanation.

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The sale of foreign investment and gold reserves can be used to

  • A. correct adverse balance of trade
  • B. increase invisible imports
  • C. correct a budget deficit
  • D. correct adverse balance of paymentsCorrect

Explanation

Selling foreign investment and gold reserves is treated like an export; it is one way a country can correct an adverse balance of payments.

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