A country's current account and capital account are roughly equal but of opposite signs.

True

False

Question 2

Which statement about the General Agreement on Tariffs and Trades (GATT) is false?

• A. GATT has not been revised in decades.
• B. GATT is a treaty.
• C. Signatories to GATT number over a hundred.
• D. Trade disputes among signatories to GATT are adjudicated by a world court whose decisions are binding on the parties.

Question 3

The Bank of England was crippled by the Exchange Rate Mechanism (ERM) because...

• A. Germany's interest rates rose, which caused the deutschmark to fall against the British pound.
• B. Germany's interest rates rose, which caused the deutschmark to rise against the British pound.
• C. Germany's interest rates fell, which caused the deutschmark to fall against the British pound.
• D. Germany's interest rates fell, which caused the deutschmark to rise against the British pound.