Question
NOTE: Please answer both multiple-choice otherwise don't answer. explain your choice. Thanks 14 - Which of the following is/are true? I. If over-all balance <
NOTE: Please answer both multiple-choice otherwise don't answer. explain your choice. Thanks
14 - Which of the following is/are true?
I. If over-all balance< 0; that is, if the country has a net foreign payment deficit, the CB meets the demand by selling its reserve assets.
II. If over-all balance> 0 ; that is, if the country has a net foreign payment surplus, the MB will increase the foreign exchange reserves by attracting excess foreign currency supply.
III. If the transaction records are made completely and without errors (NEO = 0), the current account balance, capital and financial accounts balance and reserve assets balance sum must be zero: Current Account Balance + Capital Account Balance + Net Errors and Omissions-Finnacial Accounting Balance - Reserve Assets = 0
A) Il and III
B) I, Il and Ill
C) I and II
D) II
E) I and Ill
15 - Which of the following enters into the balance of payments recording with a negative sign?
A) Expenditures of a tourist in the home country
B) Financial aid obtained from an international institution
C) Transferred profit of a company to abroad
D) Export of a good
E) Treasury bills sold to a foreigner
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