A capital account surplus might be expected to cause a current account deficit because the associated
A. | capital outflow would cause the nation's currency to depreciate, contributing to a trade deficit |
B. | capital inflow would cause the nation's currency to depreciate, contributing to a trade deficit |
C. | capital inflow would cause the nation's currency to appreciate, contributing to a trade deficit |
D. | capital outflow would cause the nation's currency to appreciate, contributing to a trade deficit |
Option: C Explanation : Click on Discuss to view users comments. |
Which exchange rate system does not require monetary reserves for official exchange rate intervention
A. | floating exchange rates |
B. | pegged exchange rates |
C. | managed floating exchange rates |
D. | dual exchange rates |
Option: A Explanation : Click on Discuss to view users comments. |
Historically, countries at early stages of rapid economic development have tended to experience
A. | trade deficits and an excess of investment over domestic saving |
B. | trade surpluses and an excess of investment over domestic saving |
C. | trade deficits and an excess of domestic saving over investment |
D. | trade surpluses and an excess of domestic saving over investment |
Option: A Explanation : Click on Discuss to view users comments. |