Which of the following statements is TRUE of trade surplus?
A) It is a negative balance of trade.
B) It occurs when there is a net outflow of domestic currency to foreign markets.
C) It occurs when a nation's imports are greater than its exports.
D) It occurs when a nation's exports are greater than its imports.

Question

Quizplus · Accepted Answer

A trade surplus occurs when a country's exports exceed its imports, meaning the country sells more goods and services to other countries than it buys from them. This results in a positive balance of trade.

Which of the Following Statements Is TRUE of Trade Surplus