The term 'Current Account Deficit' indicates: MCQ with Answer and Explanation

The term 'Current Account Deficit' indicates:
A. Surplus in the overall balance of payments
B. Excess of capital inflows over outflows
C. Excess of imports of goods and services over exports
D. Excess of government expenditure over revenue
Answer: Option C
Solution (By JKSSB Mock Tests)
Current Account Deficit occurs when the value of imports of goods, services and transfers exceeds the value of exports of goods, services and transfers.

Discuss this Question (0)

No comments yet. Be the first to start the discussion!

Practice More Economy Set 1 Questions

Question #1
Which of the following is a standard classification of unemployment based on cause?
A. Only natural rate as the sole category
B. Frictional, structural, cyclical and seasonal
C. Only disguised unemployment as the sole category
D. Only voluntary unemployment

Correct Answer: Option B


Explanation:
Unemployment is commonly classified by cause into frictional, structural, cyclical and seasonal categories.

This question belongs to: Economy GK Economy Set 1
Question #2
The 'FDI' in single brand retail is allowed up to what percentage?
A. 49%
B. 74%
C. 100%
D. 51%

Correct Answer: Option C


Explanation:
FDI in single brand retail is allowed up to 100%.

This question belongs to: Economy GK Economy Set 1
Question #3
Which of the following is a feature of the 'Dual-Self' or 'Planner-Doer' models of self-control?
A. There is no internal conflict
B. Individuals have a single consistent set of preferences
C. Individuals are modelled as consisting of a far-sighted planner and a myopic doer who are in conflict
D. Only the doer determines all behaviour

Correct Answer: Option C


Explanation:
Planner-doer models represent the individual as containing both a long-run planner who values future consequences and a short-run doer who is tempted by immediate rewards, generating self-control problems.

This question belongs to: Economy GK Economy Set 1