A surplus current account means
A. Receipts > Payments
B. Receipts - Payments
C. Receipts < Payments
D. Receipts > Price of commodity
E. Receipts = Total Sale
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → A Only
A surplus in the current account of a country's balance of payments means that the country is exporting more goods, services, and transfers than it is importing. In other words, the receipts from exports and other income are greater than the payments for imports and other expenditures.