SSC Stenographer 2026 PYQ — Question 24

Solution: The correct answer is Exports > Imports.
Explanation:
☛ A Current Account Surplus occurs when the total value of goods, services, and transfers exported or received from abroad exceeds the total value imported or sent out.
☛ In the context of trade and international transactions, this condition fundamentally signifies that Exports > Imports.
☛ Conversely, when total imports exceed total exports, the country experiences a Current Account Deficit (CAD).
☛ In India's external sector, periods of current account surplus are typically driven by a surge in services exports (like IT and consulting) and strong inward remittances.
Extra Exam-Relevant Facts:
☛ Balance of Payments (BoP): It is a comprehensive financial statement consisting of the Current Account (goods, services, income, transfers) and the Capital Account (investments, loans, reserves).
☛ Trade Deficit: A situation where the value of imported merchandise exceeds the value of exported merchandise.
☛ Capital Receipts: Recorded under the Capital Account, including Foreign Direct Investment (FDI), Foreign Portfolio Investment (FPI), and external commercial borrowings.
☛ Fiscal Deficit: Pertains to government finances, representing the excess of total government expenditure over non-debt receipts, entirely distinct from the trade balance.
Important One-Liners for Upcoming Exams:
☛ What does a negative balance of trade represent? → Trade Deficit
☛ Which institution publishes the Balance of Payments Manual (BPM)? → International Monetary Fund (IMF)
☛ Foreign Direct Investment (FDI) is recorded under which account of BoP? → Capital Account
☛ Unilateral transfers like foreign remittances and gifts are part of which BoP account? → Current Account
☛ Which regulatory body compiles and releases India’s Balance of Payments data? → Reserve Bank of India (RBI)