In a balance of payments statement, the current account plus the ...

[piesebel]

In a balance of payments statement, the current account plus the financial account must equal the capital account.
 
  Indicate whether the statement is true or false

Question 2

If one day the dollar is trading at 1.00 euro per dollar and the next day the exchange rate is 0.88 euros per dollar, one possible factor that might have led to this change is
 
  A) an increase in the U.S. interest rate.
  B) a decrease in the European interest rate.
  C) the Fed buying dollars.
  D) the Fed selling dollars.
  E) an increase in the expected future exchange rate.

[pangili4]

Answer to Question 1

FALSE

Answer to Question 2

D