Question

Can anyone explain CAD Current account deficit?

Answer 1

http://useconomy.about.com/od/glossary/g/Current_Account.htm
hope this helps...

Answer 2

Current account deficit occurs when a country's total imports of goods, services and transfers is greater than the country's total export of goods, services and transfers. This situation makes a country a net debtor to the rest of the world.

Answer 3

First, have you ever taking any sort of Accounting class? Because when you hear about "Current Accounts" and "Capital Accounts"--they're basically referring to a countries Balance Sheet...

Also, could you elaborate on what you'd like to know about a current account deficit?

Answer 4

I don't do accounting um I don't get what it is? @Splash_Dance

Answer 5

u dont need to go into accounting for this...just go through the definitions below and youll get a rough idea what the question is talking about

The difference between a nation’s savings and its investment. The current account is an important indicator about an economy's health. It is defined as the sum of the balance of trade (goods and services exports less imports), net income from abroad and net current transfers. A positive current account balance indicates that the nation is a net lender to the rest of the world, while a negative current account balance indicates that it is a net borrower from the rest of the world. A current account surplus increases a nation’s net foreign assets by the amount of the surplus, and a current account deficit decreases it by that amount. The current account and the capital account are the two main components of a nation’s balance of payments.


A national account that shows the net change in asset ownership for a nation. The capital account is the net result of public and private international investments flowing in and out of a country. The capital account includes foreign direct investment (FDI), portfolio and other investments, plus changes in the reserve account. The capital account and the current account together constitute a nation's balance of payments.


After going through these go back to your question it would be easy for you to understand as i have already provided with the answer of CAD

Goodluck Hope this helps :)