When a country is running a balance of payments surplus, it means that the ﬁnancial ﬂows going out of the country are lower than the ﬁnancial ﬂows coming in to the country.

Question

Quizplus · Accepted Answer

A balance of payments surplus indicates that a country's receipts from exports, foreign investments, and other financial transactions are exceeding its payments for imports, foreign investments, and other financial outflows. Therefore, the financial flows coming in are higher than the financial flows going out.

When a Country Is Running a Balance of Payments Surplus