A current account surplus implies that ?
Correct answer: A. the country is a net lender to the rest of the world
- A. the country is a net lender to the rest of the world
- B. the country is running a net capital account surplus
- C. foreign investment in domestic securities is at very low levels
- D. All of the above
Explanation
A current account surplus means national saving exceeds domestic investment, leaving funds lent or invested abroad, so the country is a net lender. It does not necessarily imply a capital-account surplus or low foreign investment in domestic securities.
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