If a country runs a deficit in its current account, it is because exports exceed imports O imports exceed exports net unilateral transfers are negative foreign currency received from exports and transfers exceeds the foreign exchange needed to pay for imports and to make unilateral transfers foreign currency received from exports and transfers is less than the foreign exchange needed to pay for imports and to make unilateral transfers Foreign exchange means O O changing dollars into foreign currency domestic currency held to finance international trade foreign currency trade between governments trade between individuals in different countries One difference between arbitrageurs and speculators is that arbitrageurs buy and sell foreign exchange; speculators do not speculators only buy foreign exchange but do not sell it arbitrageurs take more risks than do speculators speculators take more risks than do arbitrageurs arbitrageurs buy foreign exchange in the hope that its value will increase