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Q1 international Finance QUESTION 5 How does a country with a managed float exchange rate maintain its Balance of Payments if it runs a persistent

Q1 international Finance

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QUESTION 5 How does a country with a managed float exchange rate maintain its Balance of Payments if it runs a persistent current account deficit? By having the central bank adjust interest rates to balance the amount of domestic currency in the financial system By having a surplus in the capital and financial accounts The government tops up the Balance of Payments By having a surplus in the capital account only

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