explain what is current acount deficit?

Answer 1

I think you are talking in terms of international trade.

For a business the current account would be they would sell to customers on short term credit, and they would buy from their suppliers on short term credit. If on any given day you look at those totals and notice they are changing from their past they might be warning sings.

So, Current account is typically debts from this year that are owing this year. In economic you apply it to world trade. If you add up your exports and subtract all you imports, it is your current account. If you import more than you export you have a deficit. Your country used more than it produced for the year.

Answer 2

Neither answer is correct if you mean the current account deficit that is generally talked about, the one on the Balance of Payments. The balance of payments current account comprises exports and imports of goods (that's what is called the "trade balance"), exports and imports of services, and international payments of interest, dividends and transfers. Transfers are mainly remittances by foreign workers to their families back home, and aid and charity payments.

A "deficit" on current account, of course, simply means that more money is going out of the country for these purposes (imports, etc) than is coming in.

Answer 3

When you owe a credit company "X "amount of money.That is the debt you currently owe.Should you wish to extend/pay this credit. then your debt would increase/decrease accordingly.This then would be your new current account

Answer 4

its when you dont have enough money to put in your checking account to cover all the bad checks you wrote.

Answer 5

$477 billion this year.

http://www.brillig.com/debt_clock/