JAMB - Economics (2010 - No. 42)
If Nigeria imports vehicles from Japan the transaction will appear as a
debit on Japan's balance of payments
credit on Japan's balance of payments
credit on Nigeria's balance of trade
credit on Nigeria's balance of payment
Explanation
The balance of payments (BOP) is a statement of all transactions made between entities in one country and the rest of the world over a defined period of time, such as a quarter or a year.
Japan's current account in the balance of payment will have a credit balance to the tone of the car value in monetary terms while Nigeria's capital account will be debited
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