Question

Distinguish between ‘Current Account Deficit’ and ‘Current Account Surplus’.

Distinguish between Current Account Deficit (CAD) and Current Account Surplus (CAS).

Answer 1

S. No.	Current Account Deficit	Current Account Surplus
1.	It results when the export of goods and services is less than the imports.	It results when the export of goods and services is more than the imports.
2.	It results in a trade deficit.	It results in a trade surplus.
3.	It results in an outflow of foreign reserves.	It results in an inflow of foreign reserves.