If net interest and net transfers are zero, and a country's exports exceed its imports, the country definitely has
A) a current account surplus.
B) a current account deficit.
C) a capital and financial account surplus.
D) an official settlements account surplus.

Question

Quizplus · Accepted Answer

When a country's exports exceed its imports, it means the country is selling more goods and services to the rest of the world than it is buying. This results in a trade surplus, which is a component of the current account. Since net interest and net transfers are zero, the trade surplus directly contributes to a current account surplus.

If Net Interest and Net Transfers Are Zero, and a Country's