Question:
Surplus in Balance of Payments (BOP) refers to the excess of _________ .
Surplus in Balance of Payments (BOP) refers to the excess of _________ .
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In surplus-related questions, focus on whether inflows (receipts) exceed outflows (payments).
Updated On: July 22, 2025
- Autonomous payments over Autonomous receipts
- Current Account payments over Autonomous receipts
- Capital Account receipts over Capital Account payments
- Autonomous receipts over Autonomous payments
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The Correct Option is D
Solution and Explanation
A surplus in the Balance of Payments occurs when autonomous receipts (inflows from exports, foreign investments, etc.) exceed autonomous payments (outflows for imports, investments abroad, etc.). This surplus indicates a favorable balance of payments, as it reflects higher inflows compared to outflows.
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