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Question

Current account deficit denotes:

A That the expenses of a country are more than its income Correct Answer Incorrect Answer
B That the value of the goods and services imported in the country is more than the value of the good and services exported Correct Answer Incorrect Answer
C Export losses on account of appreciation of domestic currency Correct Answer Incorrect Answer
D Import losses on account of depreciation of domestic currency Correct Answer Incorrect Answer
E None of these Correct Answer Incorrect Answer

Solution

Current account deficit is a measurement of a country’s trade where the value of the goods and services it imports exceeds the value of the goods and services it exports. The current account also includes net income, such as interest and dividends, as well as transfers, such as foreign aid, though these components make up only a small percentage of the current account when compared to exports and imports. Along with the capital account, is a component of a country’s balance of payment?

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