A current account deficit is generally a result of:

Question

Quizplus · Accepted Answer

A current account deficit is when a country is importing more goods and services than it is exporting. Therefore, imports exceeding exports (choice A) is the correct answer. The other options (B and C) involve investments or purchases of assets from foreign countries, which are not directly related to the current account balance. In fact, they could be seen as contributing to a capital account surplus (when a country invests more abroad than foreigners invest in the country). Choice D (exports exceeding imports) would result in a current account surplus, not a deficit.

A Current Account Deficit Is Generally a Result Of