Question : Which of the following is not a type of balance of payments surplus or deficit?
Option 1: Trade surplus or deficit
Option 2: Current account surplus or deficit
Option 3: Capital account surplus or deficit
Option 4: Service account surplus or deficit
Correct Answer: Service account surplus or deficit
Solution : The correct answer is (d) Service account surplus or deficit.
The balance of payments is a record of all economic transactions between residents of a country and the rest of the world during a specific period. It is divided into several components, including the current account, capital account, and financial account.
Service account surplus or deficit is not a type of balance of payments surplus or deficit. The service account is a component of the current account and includes services such as transportation, tourism, and financial services. However, the term "service account surplus or deficit" is not commonly used to describe a specific balance within the balance of payments framework.
