Author Question: If Country A's reserve account is equal to +300 billion, then: a. There is an excess demand for ... (Read 44 times)

crobinson2013 · **on:** Jun 30, 2018

If Country A's reserve account is equal to +300 billion, then:
a. There is an excess demand for Country A's currency in the foreign exchange market that is being met by the central bank selling enough domestic currency to make up the difference.
b. There is an excess supply of Country A's currency in the foreign exchange market that is being met by the central bank buying enough domestic currency to make up the difference.
c. Country A's reserves account cannot 300 billion. It must equal 0.
d. Country A's current account must equal = -300 billion.
e. Country A's current account minus capital account must equal-300 billion.

Question 2

Which of the following is a major reason for offshoring?
a. Increased global demand for services,
b. Greater worldwide competition,
c. The gradual diminishing of global technological advances,
d. All of the above are reasons for offshoring.