Author Question: Suppose you study abroad in England. When you purchase books and food, these transactions should ... (Read 58 times)

magmichele12 · **on:** Jun 30, 2018

Suppose you study abroad in England. When you purchase books and food, these transactions should really be recorded as

A) credits to the capital account and debits to the current account.
B) debits to the capital account and credits to the current account.
C) debits to the capital account and debits to the current account.
D) credits to the capital account and credits to the current account.

Question 2

In the two-country model of the Monetary Approach, the spot exchange rate is determined by

A) the relative quantities of money supplied and demanded.
B) the real money stock in country A vs. country B.
C) the nominal incomes in the two countries.
D) the ratio of prices in the economies.