Current Account Deficit: If imports are more than exports - General Economics & Indian Economy
Q. Consider the following statements
1. If the imports are more than exports it leads to Current Account Deficit
2. Developed countries, such as the United States, often run current account deficits, while emerging economies often run current account surpluses.
Which of the above statements is/are correct?- Published on 07 Jun 15a. Only 1
b. Only 2
c. Both
d. None
ANSWER: Both
India's current account deficit came in at a mere 0.2% of gross domestic product (GDP) for the March 2015 quarter. For 2014-15 as a whole, the current account deficit was a low 1.3% of GDP.
