Question : A current account surplus can be used to finance a ______________in the capital account.

Option 1: surplus

Option 2: deficit

Option 3: balance

Option 4: trade

Question : Which of the following is not a component of the balance of payments?

Option 1: Current account

Option 2: Capital account

Option 3: financial account

Option 4: Trade account

Question : When a country's imports exceed its exports, it results in:

Option 1: A trade deficit

Option 2: A trade surplus

Option 3: A balance of payments surplus

Option 4: A balance of payments deficit

Question : When a country's imports exceed its exports, it is said to have a:

Option 1: Trade deficit

Option 2: Trade surplus

Option 3: Balance of payments surplus

Option 4: Balance of payments deficit

Question : Which of the following is not a component of the current account?

Option 1: Merchandise trade balance

Option 2: Services trade balance

Option 3: Income balance

Option 4: Capital balance