Answer to Question #8340 in Macroeconomics for Momin rohan

Question

Deficit in current account of balance of payment?

Answer 1

When the balance of payments is negative it is in deficit. The current account
deficit is where imports of goods, services, investment income and transfers
exceed the exports of goods, services, investment income and transfers. Current
Account deficit could occur during a period of inward investment (surplus on
financial account).