mMCQ.

Navigation Menu

Step into mMCQ.

Launch mMCQ. diagnostic

Explore mMCQ.

MDCAT prepFree DiagnosticPricing & SubscribeSign in

Resources

Terms & Conditions

mMCQ.

© 2021 - 2025 mMCQ.All rights reserved.

WhatsApp
O Levels Economics (2281)•2281/13/O/N/19
Question 27 from 2281/13/O/N/19

Explanation

Services exports improve the invisible trade balance

Steps:

  • Identify invisible trade as exports/imports of services like transport, not goods.
  • Seek Kenyan service export for favorable (credit) impact on balance.
  • Evaluate options: A involves Kenyan transport service; others relate to goods or costs.
  • Confirm A credits Kenyan invisible account via service revenue.

Why A is correct:

  • Transport contracts are service exports, crediting the invisible account per balance of payments definitions.

Why the others are wrong:

  • B: Tea exports are visible goods trade, not services.
  • C: Delegation visit incurs Kenyan service import costs, debiting the account.
  • D: Zambian exports to Kenya are Kenyan goods imports, worsening visible trade.

Final answer: A

Topic: Current account of balance of payments

Practice more O Levels Economics (2281) questions on mMCQ.me