Use app×
Join Bloom Tuition
One on One Online Tuition
JEE MAIN 2025 Foundation Course
NEET 2025 Foundation Course
CLASS 12 FOUNDATION COURSE
CLASS 10 FOUNDATION COURSE
CLASS 9 FOUNDATION COURSE
CLASS 8 FOUNDATION COURSE
0 votes
80 views
in Economics by (90.7k points)
closed by
Should a current account deficit be a cause for alarm? Explain.

1 Answer

0 votes
by (91.8k points)
selected by
 
Best answer
No, if deficit in current account is offset by the capital account(autonomous transactions) otherwise, such deficit has to be met by the following, which is a cause for alarm,
i) Depleting foreign exchange reserves.
ii) Taking foreign loans.

Welcome to Sarthaks eConnect: A unique platform where students can interact with teachers/experts/students to get solutions to their queries. Students (upto class 10+2) preparing for All Government Exams, CBSE Board Exam, ICSE Board Exam, State Board Exam, JEE (Mains+Advance) and NEET can ask questions from any subject and get quick answers by subject teachers/ experts/mentors/students.

Categories

...