When credit balance in invisibles account is greater than the debit balance in merchandize account, there is a ____________.
Capital account surplus
Current account surplus
Capital account deficit
Current account deficit
None of the above

Question

When credit balance in invisibles account is greater than the debit balance in merchandize account, there is a ____________.
Capital account surplus
Current account surplus
Capital account deficit
Current account deficit
None of the above

Toppr Admin · Accepted Answer

The invisible-xA0-account includes investment income- tourism- financial charges and transportation expenses- The merchandise account includes exports and imports- The balance of current account reflects the net flow of goods- services ad unilateral transfer- Hence when credit balance in invisible account is greater than the debit balance in merchandise account- there is a current account surplus-

When credit balance in invisibles account is greater than the debit balance in merchandize account, there is a ____________.Capital account surplusCurrent account surplusCapital account deficitCurrent account deficitNone of the above

When credit balance in invisibles account is greater than the debit balance in merchandize account, there is a ____________.
Capital account surplus
Current account surplus
Capital account deficit
Current account deficit
None of the above