A current account surplus is generally a result of:

Question

Quizplus · Accepted Answer

A current account surplus occurs when a country's exports exceed imports, meaning that they are selling more goods and services to foreign countries than they are buying from them. This can lead to an increase in foreign currency reserves and a stronger domestic currency. A and B are incorrect because they refer to situations that would result in a current account deficit, where a country is buying more from foreign countries than it is selling to them. C can potentially lead to a surplus, but it is not a guarantee and is not as directly linked as exports exceeding imports.

A Current Account Surplus Is Generally a Result Of