The table gives current account figures (in million USD) of three countries for a year.
| Country | Receipts on current account | Payments on current account |
|---|---|---|
| P | 500 | 450 |
| Q | 400 | 400 |
| R | 300 | 360 |
Which of the following is correct?
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → P is a lender to other countries, Q has a balanced current account and R is a borrower from other countries.
Compare receipts with payments for each country.
P: 500 > 450, a surplus, so P is a lender.
Q: 400 = 400, so Q’s current account is in balance.
R: 300 < 360, a deficit, so R is a borrower.
NCERT (2026-27): “Balance on 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.” |