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प्रश्न
Should a current account deficit be a cause for alarm? Explain.
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उत्तर
Current account deficit is the excess of total imports of goods, services and transfers over total exports of goods, services and transfers. This situation makes a country debtor to the rest of the world. But, this cannot be always treated as a cause for alarm because countries might be running in deficits (current account) to increase productivity and exports in future. Also, more investment will help in building capital stock, which in future will lead to rise in output.
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संबंधित प्रश्न
Which of the following transactions are recorded in the current account of the balance of payments?
Identify the correct matched pair from Column A to Column B and choose the correct alternative:
| Column A | Column B |
| 1. Export of weapons to Vietnam | (a) Credit side of Current Account |
| 2. Import of Apache Helicopter from USA | (b) Capital Account of Balance of Payments |
| 3. Remittances from relative from UAE | (c) Debit side of Current Account of Balance of Payments |
| 4. Investment by Tesla Incorporation in India | (d) Credit side of Current Account of Balance of Payments |
Payment for import of goods is recorded in the ______ side of the Current account of the Balance of Payments.
Read the following statements carefully and choose the correct alternatives given below:
Statement 1: Current account records exports and imports of visible and invisible items only.
Statement 2: The balance of the current account is the difference between the sum of credit items and the sum of debit items on the current account.
Assertion (A): Import of machinery is reflected in the current account of the balance of payments.
Reason (R): Export and import of goods and Invisibles are recorded in the current account of the balance of payments.
What does the current account of a country's Balance of Payments record?
In the current account, exports and imports of physical goods are categorised as:
Tourism, banking, insurance, transportation, and software services are examples of which component of the current account?
Which of the following correctly describes unilateral transfers in the current account?
A current account deficit means that:
The balance on the current account has which two components?
The Balance of Trade (BOT) is defined as:
A BOT (Balance of Trade) surplus occurs when:
A BOT (Balance of Trade) deficit occurs when:
In current account accounting, an export of goods or services is recorded as a:
In current account accounting, an import of goods or services is recorded as a:
