Question : Which of the following is not a type of balance of payments surplus or deficit?

Option 1: Trade surplus or deficit

Option 2: Current account surplus or deficit

Option 3: Capital account surplus or deficit

Option 4: Service account surplus or deficit

Question : If a country experiences a decrease in its foreign exchange reserves, it indicates:

Option 1: A surplus in the current account

Option 2: A deficit in the current account

Option 3: A surplus in the capital account

Option 4: A deficit in the capital account

Question : If a country experiences an increase in its foreign exchange reserves, it indicates:

Option 1: A surplus in the current account

Option 2: A deficit in the current account

Option 3: A surplus in the capital account

Option 4: A deficit in the capital account

Question : If a country receives more income from its foreign investments than it pays to foreign investors, it will have a:

Option 1: Current account surplus

Option 2: Current account deficit

Option 3: Capital account surplus

Option 4: Capital account deficit

Question : A ____ deficit is financed by net capital flows the rest of the world, thus by a capital account surplus.

Option 1: current account

Option 2: saving account

Option 3: capital account

Option 4: asset account