PART I: TRUE/FALSE/UNCERTAIN QUESTIONS: (60 marks) (4.63 marks each). Indicate whether the following statement is true, false or uncertain. You do not have to justify your answer,

For most countries there is a close connection between balance-o payments deficits and reserves declines, but in the case of the U.S., U. balance-of-payments deficits have not been correlated with reserves clines