Identify the correct statement from the following.

Option 1 -> A trade surplus is only part of the balance of payments; other accounts can offset it, so this doesn't always lead to a BOP surplus.

Option 2 -> The current account includes trade balance plus net income and transfers; it's not always greater as other components can be negative.

Option 3 -> A BOP deficit would typically be associated with a current account deficit, not surplus; this statement is contradictory.

Option 4 -> According to the balance of payments identity (Current Account + Capital & Financial Account = 0), a current account deficit must be matched by a capital/financial account surplus.

Hence, Option 4: Any current account deficit must be financed by a capital account surplus. -> This reflects the fundamental balance of payments accounting identity. When a country runs a current account deficit (imports exceed exports, or net outflow of funds for trade and transfers), it must be financed by borrowing from abroad or selling assets to foreigners, which appears as a capital and financial account surplus. The two sides must balance by definition, making this statement correct. -> correct