Question : When a country's imports exceed its exports, it is said to have a:
Option 1: Trade deficit
Option 2: Trade surplus
Option 3: Balance of payments surplus
Option 4: Balance of payments deficit
Answer (1)
22nd Jan, 2024
Correct Answer: Trade deficit
Solution : The correct answer is a) Trade deficit.
When a country's imports exceed its exports, it is said to have a trade deficit. A trade deficit occurs when the value of goods and services a country imports exceeds the value of its exports. This means that the country is buying more from foreign countries than it is selling to them.
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