What does a surplus in the current account indicate about a country?

Show Answers

The nation is a net lender to other countriesThe country has a net surplus in its capital accountForeign investments in the country's securities are minimalAll the statements above are true

Explanation

A current account surplus means the country is lending more to the rest of the world than it is borrowing. This does not necessarily imply a capital account surplus or low foreign investment in domestic securities, so only option A is correct.