What does a surplus in the balance of payments indicate?

JAMB Commerce 2023 56 views

What does a surplus in the balance of payments indicate?

  1. The country is spending more on imports than it earns from exports.
  2. The country is earning more from exports than it spends on imports. ✓
  3. The country has a negative net income from foreign investments.
  4. The country has a balanced trade with no surplus or deficit.

Explanation

This answer correctly describes the business or trade concept. Commerce deals with buying, selling, and business operations.

The other options relate to different aspects of business or trade. They aren’t the best answer here.

Understanding this helps you grasp how businesses operate and how trade happens.

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