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Username: Chaoxiang Lee Rating:  Asked to: Chaoxiang Lee Date Created: 30 Jan 2015 |
| Category | 17 |
| Tag | Forex |
| Question | Current account surplus what is it? |
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A positive difference between a nation’s savings and investment. A current account surplus indicates that a nation is a net lender to the rest of the world, in contrast to a current account deficit, which indicates that it is a net borrower. The current account is the sum of the trade balance (exports less imports), net income from abroad and net current transfers; as the trade balance is generally the largest of these components, a current account surplus usually implies that the nation is a large exporter and has a positive trade balance. A current account surplus increases a nation’s net assets by the amount of the surplus. |
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