Current Account Deficit - GS questions based on daily current affairs

1)   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?

a. Only 1
b. Only 2
c. Both
d. None
Answer  Explanation 

ANSWER: Both

Explanation:
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.

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