what is Current account deficit?

ANSWER TO THE ABOVE QUESTION First we need to understand what Current account is. Simply put Current account is the diffference between the country's overall exports and imports If the country's imports are greater than its exports it is spending more than it is earning. This situation is called current account deficit. This situation over a small period of time is ok but if this prevails for a long period of time, this will have a depreciative affect on the country's currency and economy and the company may become debtridden.