What does a "trade deficit" mean?

A A country exports more than it imports

B A country imports more than it exports

C Exports and imports are equal

D The country has no international trade

✓ Correct Answer: Option B

A trade deficit (negative balance of trade) occurs when the value of a country's imports exceeds the value of its exports.

💡 Why is B) the correct answer?

The correct answer to the question "What does a "trade deficit" mean?" is Option B: A country imports more than it exports.

The other options — A) A country exports more than it imports, C) Exports and imports are equal, D) The country has no international trade — are incorrect for this General Knowledge question. As explained above: A trade deficit (negative balance of trade) occurs when the value of a country's imports exceeds the value of its exports.

📚 About This General Knowledge Practice Question

This 2-level General Knowledge question from the Capitals & Currencies topic is part of One Paper Preparation's free exam preparation library. Each question includes the correct answer and a detailed explanation to help you understand the underlying concept, not just memorize the answer.

How to use this page: Read the question above, consider all four options (A through D), then check the highlighted correct answer and explanation. For active timed practice, start a free General Knowledge practice test or use flashcards for spaced repetition review.

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What does a "trade deficit" mean?

✓ Correct Answer: Option B

📚 About This General Knowledge Practice Question

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