Which among the following is generally known as twin

Q: Answer-Which among the following is generally known as twin deficit?

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.

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:

Uttarakhand Assistant Agriculture Officer

Thank You for posting your query. Please check your email for further guidance

Please Register/Login to Download Question