Concept:A Current Account Deficit means a country’s total foreign exchange outflows are greater than its total inflows in the current account.
Explanation:The current account records trade in goods and services, income, and transfers.
Exports and inflows earn foreign exchange for the country.
Imports and outflows require payment to other countries.
When total imports exceed total exports during the year, the current account falls into deficit.
This shortfall is called the Current Account Deficit (CAD).
Answer:Option C is correct: Deficit caused due to excess of total imports over total exports during the year.