B. B. The rate at which export pays for import

A. A. Trade agreement between two or more countries

B. B. The rate at which export pays for import

C. C. The period at which trade occurs

D. D. The rate of exchange for foreign currencies

JAMB Commerce 2020 Objective — Question 35

Question 35 of 40 from the Joint Admissions and Matriculation Board (JAMB) Commerce 2020 Objective paper, with the correct answer and a full explanation.

35. Term of trade is

A. A. Trade agreement between two or more countries
B. B. The rate at which export pays for importCorrect
C. C. The period at which trade occurs
D. D. The rate of exchange for foreign currencies

Explanation

Term of trade is the rate at which export pays for import. It is calculated thus: Term of trade = export price / import price.

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