Friday, June 26, 2015

Term of the Day: Current Account Deficit

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June 26, 2015
Current Account Deficit

A measurement of a country's trade in which the value of goods and services it imports exceeds the value of goods and services it exports. The current account also includes net income, such as interest and dividends, as well as transfers, such as foreign aid, though these components tend to make up a smaller percentage of the current account than exports and imports. The current account is a calculation of a country's foreign transactions, and along with the capital account is a component of a country's balance of payment.

Investopedia Explains:

A current account deficit represents a negative net sales abroad. Developed countries, such as the United States...

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Related Definitions

Budget Deficit
Balance Of Payments (BOP)
Current Account
Net Borrower
Trade Deficit

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Equity Market
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