ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Current Account Formula = (X-M) + NI + NT For the trade balance to be positive, a country needs to have more exports than imports. The exports and imports include both goods and services produced in the country. Net income mainly includes income from foreign countries, and net transfers consist of government transfers.

Detailed explanation-2: -Balance of trade (BOT) = Value of Exports − Value of Imports Where, BOT is the Balance of trade or trade balance. Value of exports is the value of goods that are exported out of the country and sold to buyers of other countries.

Detailed explanation-3: -Current Account in the United States averaged-55866.65 USD Million from 1960 until 2022, reaching an all time high of 9957.00 USD Million in the first quarter of 1991 and a record low of-282540.00 USD Million in the first quarter of 2022.

Detailed explanation-4: -The U.S. current-account deficit-the combined balances on trade in goods and services, income, and net unilateral current transfers-increased to $473.4 billion (preliminary) in 2011 from $470.9 billion in 2010. As a percentage of U.S. GDP, the deficit decreased to 3.1 percent in 2011 from 3.2 percent in 2010.