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 : When a country experiences a surplus in the financial account of the Balance of Payments, it indicates that:

Option 1: It is earning more income from its foreign investments than it is paying out

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

Option 3: It is exporting more goods than it is importing

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

Question : A surplus in the capital 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 borrowing more from foreign sources than it is lending

Option 4: 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

Question : Which of the following is not an example of a current account transaction?

Option 1: Exporting goods and services

Option 2: Paying for foreign aid

Option 3: Receiving income from foreign investments

Option 4: Borrowing from a foreign bank