Assertion (A): India often has a trade deficit but a smaller current account deficit.
Reason (R): India earns large net receipts from services such as software and from remittances.

Both A and R are true, and R is the correct explanation of A.Correct answerYour answerBoth A and R are true, but R is not the correct explanation of A.Correct answerYour answerA is true, but R is false.Correct answerYour answerA is false, but R is true.Correct answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer A

Correct answer: A

Surpluses on invisibles offset much of the deficit on goods. R explains A.

Concept: India's current account
Typical timeTypical: 70 s
Your timeYours: —

The rule this testsThe current account

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Ten questions from Balance of Payments, at your own pace.

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Ten questions from Balance of Payments, at your own pace.

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Assertion (A): India often has a trade deficit but a smaller current account deficit.Reason (R): India earns large net receipts from services such as software and from remittances.

Explanation

Assertion (A): India often has a trade deficit but a smaller current account deficit.
Reason (R): India earns large net receipts from services such as software and from remittances.