Balance of Payments MCQ — 2 Practice Questions with Answers

Explanation

India's current account deficit widened to 13.2 billion US dollars, or 1.3 per cent of GDP, in the October-December 2025 quarter, up from 11.3 billion US dollars in the corresponding quarter of the previous year, so statement 1 is correct. The widening was driven mainly by a larger goods trade gap, as the goods account deficit rose to 93.6 billion US dollars from 79.3 billion US dollars, so statement 2 is also correct. Hence both statements are correct.

Explanation

The current account deficit is the excess of imports over exports in external transactions, so A matches 2. The goods account deficit in the October-December 2025 quarter was 93.6 billion US dollars, so B matches 4. The services surplus in the same quarter was 57.5 billion US dollars, so C matches 3. The current account deficit was 1.3 per cent of GDP, so D matches 1. Hence the correct code is A-2, B-4, C-3, D-1.