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Question : 3
Total: 4
Distinguish between 'Trade Deficir' and 'Current Account Deficit.
Solution:
| Trade Deficit | Current Account Deficit |
|---|---|
| (i) Trade surplus refers to the excess of import of goods over the export of goods. | Current account deficit refers to the excess of current account payments over current account receipts. |
| (ii) It is a narrower term. | It is a broader term. |
| (iii) It does not include services and uniliateral transfers. | It includes services and unilateral transfers. |
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