Current Account Surplus
What is a Current Account Surplus?
A current account surplus is a positive current account balance, indicating that a nation is a net lender to the rest of the world.
Key Points:
- Current account surpluses refer to positive current account balances, meaning that a country has more exports than imports of goods and services.
- Countries with consistent current account surpluses face upward pressure on their currency.
- Current account surpluses can also indicate low domestic demand or maybe the result of a drop in imports due to a recession.
India’s current account surplus moderated to $15.5 billion (2.4% of GDP) in the second quarter compared with a $19.2-billion surplus (3.8% of GDP) in the April-June quarter.
The country had recorded a deficit of $7.6 billion for the quarter ended June 2019, as per balance of payment data released by the RBI on Wednesday.
Deficit and surplus
A deficit on the current account means that the value of imports is greater than the value of exports. A surplus on the current account means that the value of imports is less than the value of exports.
Try to Solve
Q. Consider the following statements:
1. A current account surplus is a positive current account balance, indicating that a nation is a net lender to the rest of the world.
2. A current account surplus means an economy is exporting a greater value of goods and services than it is importing.
3. Countries with consistent current account surpluses face upward pressure on their currency.
4. Current account surpluses can also indicate low domestic demand or maybe the result of a drop in imports due to a recession.
Which of the statements given above are correct?
(a) 1 and 3 only
(b) 2, 3, and 4 only
(c) 2 and 4 only
(d) 1, 2, 3 and 4
For daily current affairs quiz click: http://www.nalandaias.com/current-affairs/
जो लक्ष्य में खो गया
समझो वही सफल हो गया.
Daily Current Affairs Quiz for UPSC Prelims | Get updated with the daily Currents Affairs to Crack the UPSC Prelims
