Question 2
The trade figures for a West African country in a given year are outlined below.
Study the table and use the information given to answer the questions that follow:
ITEM |
|
Export of cocoa Export of crude oil Import of motor vehicles Import of plant and machinery Shipping services on exports Shipping services on imports Insurance paid on exports Insurance paid on imports Expenditure on foreign tours Expenditure by foreign tourists Grants to other countries Grants received Loans from abroad Foreign private investment Investment abroad |
200 950 250 450 220 180 45 60 140 80 70 300 550 200 350 |
Calculate:
(a) balance of trade;
(b) invisible balance;
(c) current account balance;
(d) capital account balance;
(e) balance of payments.
This is the alternative data response question to question (1) and it attracted very few candidates. The question required candidates to calculate the balance of trade, invisible balance, current account balance, capital account balance and balance of payments of a West African country. Most of the candidates who attempted this question could compute the value of balance of trade in the (a) part of the question but only few of them could distinguish between invisible balance and current account balance or capital account balance and balance of payments. Candidates scored relatively low marks in this question.
