© examsnet.com
Question : 21
Total: 47
Distinguish between Current Account Deficit (CAD) and Current Account Surplus (CAS).
Solution:
| Current Account Deficit | Current Account Surplus | |
|---|---|---|
| (i) | When import is greater than export. | When export is greater than import. |
| (ii) | More investment in foreign country. | Foreigners invest in our country which causes increase in surplus. |
| (iii) | When currency is overvalued. | When currency is undervalued. |
© examsnet.com
Go to Question: