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 : When a country experiences a surplus in its current account, it means that:

Option 1: It is exporting more goods than it is importing

Option 2: It is earning more income from its foreign investments than it is paying out

Option 3: It is receiving more foreign aid than it is providing

Option 4: It is borrowing more from foreign sources than it is lending

Question : When a country experiences a surplus in its capital account, it means that:

Option 1: It is exporting more goods than it is importing

Option 2: It is receiving more foreign aid than it is providing

Option 3: It is borrowing more from foreign sources than it is lending

Option 4: It is earning more income from its foreign investments than it is paying out

Question : A surplus in the current account of the Balance of Payments indicates that a country:

Option 1: Is exporting more goods than it is importing

Option 2: Is receiving more foreign aid than it is providing

Option 3: Is earning more income from its foreign investments than it is paying out

Option 4: Is borrowing more from foreign sources than it is lending