Consider the following statements regarding Current Account Deficit (CAD):
1. Current account deficit (CAD) is when the value of a country's imports of goods and services is greater than its exports.
2. When a country's imports exceed its exports, it leads to depreciation of currency.
Which of the statements given above are correct?
1
1 only
2
2 only
3
Both 1 and 2
4
Neither 1 nor 2