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Question : 8
Total: 13
Distinguish between 'trade deficit' and 'current account deficit'.
Solution:
| Basis of difference | Trade Deficit | Current Account Deficit |
|---|---|---|
| (i) Meaning | If the imports of goods is more than exports of goods then trade account balance is in deficit. | If the import of goods and services is less than export of goods and services, then the current account balance is in deficit. |
| (ii) Formula | Imports - Exports | Imports of goods and servicesImports of goods and services. |
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