Question

Surplus in Balance of Payments (BOP) refers to the excess of  _________ .

• A. Autonomous payments over Autonomous receipts
• B. Current Account payments over Autonomous receipts
• C. Capital Account receipts over Capital Account payments
• D. Autonomous receipts over Autonomous payments

Hint:

In surplus-related questions, focus on whether inflows (receipts) exceed outflows (payments).

Answer 1

The Correct Option is D

A Balance of Payments surplus arises when autonomous inflows (from exports, foreign investments, etc.) are greater than autonomous outflows (for imports, investments abroad, etc.). This signifies a positive balance of payments, indicating that incoming funds surpass outgoing funds.