Which of the following is an example of a surplus item on the balance of payments?

Question

Quizplus · Accepted Answer

Surplus items on the balance of payments refer to items that bring foreign currency into a country. Interest receipts from foreign residents fall under the category of "income," which is a surplus item as it represents money earned by a country's residents from foreign sources. Private and public gifts to foreign residents are categorized as "unilateral transfers," which do not bring any foreign currency into the country and are therefore not considered surplus items. Purchases of gold from foreign residents are part of the "capital account" and do not directly affect the balance of payments.

Which of the Following Is an Example of a Surplus