WAEC Economics 2021 Theory — Question 26

Question 26 of 26 from the West African Examinations Council (WAEC) Economics 2021 Theory paper, with the correct answer and a full explanation.

8(c). Outline four causes of balance of payments deficit in a country.

Model answer

(i) Excessive importation of goods not matched by exportation. (ii) Low/inadequate direct foreign investment in the economy. (iii) High cost of foreign currency. (iv) Decline in the foreign reserves of the economy.

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