Question:medium
From the following, identify the situation which indicates the Current Account Surplus (CAS) in Balance of Payments (BOP) account of a nation.
From the following, identify the situation which indicates the Current Account Surplus (CAS) in Balance of Payments (BOP) account of a nation.
Show Hint
CAS is a positive economic indicator as it shows the country is earning more from its exports and investments than it is spending on imports.
Updated On: Jan 14, 2026
- Excess of receipts on current account over the payments on current account.
- Equality of receipts on current account and payments on current account.
- Excess of payments on current account over receipts on current account.
- Excess of payments on current account over receipts on capital account.
Show Solution
The Correct Option is A
Solution and Explanation
A Current Account Surplus (CAS) is recorded when a nation's incoming funds from exports, investments, and other activities are greater than its outgoing payments for imports and foreign debts. This signifies a surplus in the current account of the Balance of Payments (BOP).
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