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Answer to Question #8340 in Macroeconomics for Momin rohan
Question #8340
Deficit in current account of balance of payment?
Expert's answer
When the balance of payments is negative it is in deficit. The current account
deficit is where imports of goods, services, investment income and transfers
exceed the exports of goods, services, investment income and transfers. Current
Account deficit could occur during a period of inward investment (surplus on
financial account).
deficit is where imports of goods, services, investment income and transfers
exceed the exports of goods, services, investment income and transfers. Current
Account deficit could occur during a period of inward investment (surplus on
financial account).
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