A current account deficit means that: MCQ with Answer and Explanation

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A current account deficit means that:

A. imports of goods, services and income exceed exports

B. capital inflows exceed outflows

C. exports of goods and services exceed imports

D. foreign exchange reserves increase

Answer: Option A

Solution (By JKSSB Mock Tests)

A current account deficit occurs when imports of goods, services and income exceed exports.

This question belongs to: Economy GK Economy Set 1

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Practice More Economy Set 1 Questions

Question #1

The 'NABARD' was established on the recommendation of which committee?

A. Rangarajan Committee

B. Narasimham Committee

C. Sivaraman Committee

D. Gadgil Committee

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Correct Answer: Option C

Explanation:
NABARD was established on the recommendation of the Sivaraman Committee.

This question belongs to: Economy GK Economy Set 1

Question #2

The value added method of measuring national income is primarily used to:

A. include transfer payments

B. avoid double counting

C. estimate depreciation

D. measure informal sector output

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Correct Answer: Option B

Explanation:
The value added method avoids double counting by measuring only the addition to value at each stage of production.

This question belongs to: Economy GK Economy Set 1

Question #3

Real GDP differs from nominal GDP because real GDP:

A. includes indirect taxes

B. includes depreciation

C. is measured at current year prices

D. is measured at base year prices

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Correct Answer: Option D

Explanation:
Real GDP is valued at constant base year prices to remove the effect of inflation.

This question belongs to: Economy GK Economy Set 1

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