Author Question: If a country has a large deficit in its current account A) it has a large surplus in its ... (Read 53 times)

Melani1276 · **on:** Jun 30, 2018

If a country has a large deficit in its current account

A) it has a large surplus in its financial account.
B) it exports more than it imports.
C) it is a net creditor to the rest of the world.
D) None of the above are necessarily true.

Question 2

In order to protect against foreign exchange risk, firms can use

A) the spot market for foreign exchange.
B) interest rate arbitrage.
C) purchasing power parity.
D) the forward market for foreign exchange.
E) the J-curve.