CBSE 2014 Class 12 Economics Delhi Set-2

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Question : 1
Total: 4
SECTION-B
(Macro-economics)

What is 'current account deficit' in the balance of payments?
Solution:  
When export of visible items, invisible items and unilateral transfers are less and import of these items are more, it leads to current account deficit.
OR
When foreign exchange receipts in current account fall, as compared to foreign exchange payments, it is known as current account deficit.
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