Option 1 -> This represents a current account surplus where the nation receives more than it pays, making it a lender.
Option 2 -> This represents a balanced current account where receipts equal payments, indicating no borrowing or lending.
Option 3 -> This represents a current account deficit where payments exceed receipts, requiring the nation to borrow from other countries.
Option 4 -> This doesn't define the relationship between receipts and payments necessary to determine deficit or surplus.
Hence, **Option 3: Receipts < Payments** -> A current account deficit occurs when a nation's payments for imports, services, and transfers exceed its receipts from exports and income. When Receipts < Payments, the country is spending more internationally than it earns, creating a shortfall that must be financed by borrowing from foreign countries or attracting foreign investment. This makes the nation a net borrower in the global economy. -> correct