A surplus in a country's trade balance means that:
A)its net exports exceed transfer payments.
B)the country's currency is over-valued.
C)the value of its net exports is positive.
D)imports into the country exceed exports.
E)domestic savings exceeds domestic investment.

Question

Quizplus · Accepted Answer

A surplus in a country's trade balance means that the value of its net exports is positive, i.e., it exports more goods and services than it imports. This leads to an increase in the country's foreign exchange reserves and can lead to a strengthening of its currency.

A Surplus in a Country's Trade Balance Means That