Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Open Economy Macro Economics

Question:

A nation is a lender to other countries. It means :

Options:

Surplus current account

Deficit current account

Trade surplus

Trade deficit

Correct Answer:

Surplus current account

Explanation:

The correct answer is option (1) : Surplus current account

Current Account is in balance when receipts on current account are equal to the payments on the current account. A surplus current account means that the nation is a lender to other countries and a deficit current account means that the nation is a borrower from other countries.