A trade surplus occurs when the current account is greater than the capital account.

Name: A trade surplus occurs when the current account is greater than the capital account.
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Question

Quizplus · Accepted Answer

A trade surplus occurs when a country's exports exceed its imports, which is reflected in the current account. The capital account is focused on financial flows, such as investment and lending between countries, and is separate from the current account. Therefore, the statement is false.

A Trade Surplus Occurs When the Current Account Is Greater