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Which one of the following terms refers to the difference between a co

June 1, 2025 by rawan239

Which one of the following terms refers to the difference between a country’s total exports and total imports ?

Fiscal deficit

Current account deficit

Trade deficit

Budget deficit

This question was previously asked in

UPSC Combined Section Officer – 2021-22

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The difference between a country’s total exports and total imports of goods is known as the Trade Balance. When imports exceed exports, it results in a Trade Deficit. The question specifically asks for the difference, which, when imports are greater than exports, is called a trade deficit.

Trade Balance = Value of Exports – Value of Imports. A Trade Deficit occurs when Imports > Exports.

Fiscal Deficit is the difference between the government’s total expenditure and its total revenue (excluding borrowings). Current Account Deficit is a broader measure that includes the balance of trade in goods and services, as well as net income and net transfers. Budget Deficit is the difference between government expenditure and government receipts.

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