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Author Question: The German government carries out an official foreign exchange intervention in which it uses dollars ... (Read 104 times)

rachel9

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on: Jun 30, 2018
The German government carries out an official foreign exchange intervention in which it uses dollars held in an American bank to buy French currency from its citizens. How is this accounted for in the balance of payments?
 
  A) current account, French good export
  B) current account, German good import
  C) financial account, French asset export
  D) financial account, German asset export
  E) financial account, German asset import

Question 2

Refer to above figure. In the absence of trade, what is the country's consumer surplus?
 
  What will be an ideal response?


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BAOCHAU2803

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Reply #1 on: Jun 30, 2018
Answer to Question 1

C

Answer to Question 2

180


rachel9

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Reply 2 on: Jun 30, 2018
Thanks for the timely response, appreciate it

ktidd

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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