1. Current Account
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2. What is current account?
Current account is among the two components of a
country’s balance of payments, the other being the
capital account.
It comprises of the balance of trade, net cash transfers
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and net factor income.
Current account, in India, is reported by the central bank
i.e. the Reserve Bank of India.
3. Positive and negative current account
balance
When a nation’s current account balance is positive, it
indicates that the nation is a net lender to the rest of the
world.
A negative balance shows that the nation is a net
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borrower from the rest of the world.
4. Current account deficit
Current account deficit occurs when a nation’s
businesses and government import more goods and
services than what they export.
During the second quarter of 2014, India registered a
current account deficit of $7.80 billion.
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