Question

Distinguish between ‘trade deficit’ and ‘current account deficit’.

Answer 1

S. No.	Trade Deficit	Current Account Deficit
1.	It is the excess of imports over exports of goods only.	It is the excess of imports over exports of both goods and services.
2.	It does not include Transfer Payments.	It also includes Transfer Payments.
3.	It is a part of the current account deficit.	Trade Deficit is a part of it.