All questions are complete.

Which of the following statements concerning the balance of payments is correct?

A) A country's persistent surpluses will eventually exhaust its holdings of other countries'

currencies.

B) A persistent surplus tends to lead to an appreciation of a country's currency, unless the central

bank intervenes.

C) Economists agree that persistent balance of payments surpluses are desirable.

D) A country's persistent deficits will eventually cause its holdings of other countries' currencies

to increase.

E) There must be an equal number of countries with balance of payments deficits as countries

with balance of payments surpluses.

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