12th Class Economics Foreign Exchange Rate Question Bank MCQs - Foreign Exchange Rate

From the following statements given in Column I and Column II, choose the correct pair of statements:

Column I Column II

A. When the value of export of goods and services is more than the value of import of goods and services. 1. Current account deficit

B. When the value of export of goods and services is less than the value of import of goods and services. 2. Current account surplus

A) A - 1, B - 2

B) A - 2, B - 1

Correct Answer: B

Solution :

[b] A - 2, B - 1

Column I		Column II
A.	When the value of export of goods and services is more than the value of import of goods and services.	1.	Current account deficit
B.	When the value of export of goods and services is less than the value of import of goods and services.	2.	Current account surplus