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Question

The term trade deficit refers to ___________.

A
shortage of consumer goods
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B
losses incurred in commercial business
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C
overdrafts obtained by traders from banks
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D
excess of imports over exports
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Solution

The correct option is D excess of imports over exports
Ans D) Excess of import over export
A trade deficit occurs when a country's imports exceed its exports during a given time period. A trade deficit represents an outflow of domestic currency to foreign markets. It is also referred to as a negative balance of trade (BOT).
Trade Deficit = Total Value of Imports – Total Value of Exports

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