New NABARD Grade A : How to prepare ESI for Prelims & Mains- Sources & Strategy
Register

Question

Which among the following is generally known as twin deficit?

A Revenue deficit and current account deficit Correct Answer Incorrect Answer
B Revenue deficit and capital account deficit Correct Answer Incorrect Answer
C Fiscal deficit and current account deficit Correct Answer Incorrect Answer
D Fiscal deficit and capital account deficit Correct Answer Incorrect Answer

Solution

The "twin deficit" refers to a situation where a country simultaneously experiences both a fiscal deficit and a current account deficit. A fiscal deficit occurs when a government spends more money than it generates in revenue. A current account deficit arises when a country imports more goods and services than it exports.

Practice Next

Relevant for Exams:

×
×