Asked by Ankush Aggarwal on Jul 21, 2024
Verified
If the current account is in deficit,imports of goods and services exceed exports of goods and services,plus net unilateral transfers.
Net Unilateral Transfers
Financial flows from one country to another that are not reciprocated, typically covering aid, grants, and remittances.
Current Account
A component of a country's balance of payments that measures the balance of trade in goods and services plus net earnings from abroad and net transfer payments over a period of time.
- Examine the structure and constituents of the balance of payments.
Verified Answer
RS
Ranjodh SinghJul 28, 2024
Final Answer :
True
Explanation :
This is correct. A current account deficit means that a country is importing more goods and services than it is exporting, plus any net unilateral transfers (such as foreign aid or remittances sent by expatriates).
Learning Objectives
- Examine the structure and constituents of the balance of payments.