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
C
You might also like to view...
A country that is a member of the World Trade Organization
A) can use tariffs and quotas to limit trade. B) can establish preferential trading arrangements with other countries. C) is allowed to eliminate all of its tariffs and quotas. D) All of the above.
A monopoly:
A. is a price taker. B. faces competition from other firms producing close substitutes. C. restricts its output. D. sets a low price by controlling the level of output.
The money multiplier works best if all transactions in the economy are made through the banking system
a. True b. False Indicate whether the statement is true or false
The saving of the government sector is called ________ saving.
A. private B. public C. aggregate D. national