Question

What does a current account deficit indicate about a

Q: Answer-What does a current account deficit indicate about a country's economy?

A current account deficit occurs when a country imports more goods and services than it exports. This indicates that more money is leaving the country for the purchase of imports than is entering from the sale of exports.

country's economy?

A It exports more than it imports.

B It is not involved in international trade.

C It imports more goods and services than it exports.

D Its currency is depreciating.

E It has an excess of capital inflows compared to outflows.

Practice Next

More Beepedia Questions

Who among the following was the first chief guest to attend the Republic Day in 1950?
In _________, BR Ambedkar negotiated the Poona Pact with Mahatma Gandhi.
Mauna Loa is the largest active volcano on Earth, it is located in?
Ravi has 1530 eggs with him while Vinita has 2380 eggs with her that needs to be placed in cartons. What is the maximum number of eggs that each carton ...
Who is the CEO of Indian IT giant Infosys?
In which stadium did Indian cricketer Saurav Ganguly take off and waive his t-shirt?
What percentage of the full-year target did the fiscal deficit touch for the April-December period of FY24, according to data by the Controller General ...
Which of the following statements about the river Brahmaputra is INCORRECT?
From which date the Reserve Bank of India (RBI) has increased the CRR by 50 basis points to 4.5%?
In which state is the Gandhi Sagar Dam constructed?

What does a current account deficit indicate about a

Solution