n NISM Certifications
XV NISM Series XV
Medium

When capital inflows exceed capital outflows, the country experiences a:

Practice question from NISM XV Mock Test 7 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Current account surplus

  2. B

    Current account deficit

  3. Capital account surplus

    Correct answer

  4. D

    Capital account deficit

Why this is the answer

Capital account tracks financial transactions. Surplus occurs when inflows > outflows. Current account relates to trade in goods/services.

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