Question 2
The extract from a country’s balance of payments account is shown below.
ITEM |
IMPORT ($ million) |
EXPORT ($ million) |
Agricultural products |
----- |
200 |
Using the table above, calculate the:
(a) balance of trade;
(b) invisible trade balance;
(c) balance on current account.
This is the alternative data response question to question (1) and was quite popular with the candidates. The question required candidates to calculate the balance of trade, invisible trade balance and balance on current account in the (a),(b) and (c) parts of the question respectively. Most candidates who attempted this question include the value of loans in their computation which is a distracter in the question. Candidates’ marks were a little above average in this question.
The candidates were expected to provide the following answers to obtain the maximum marks.
