QUESTION 8

If a country's freely floating currency is undervalued in terms of purchasing power parity, its reserve account is likely to be ________.

	A.	In surplus or tending toward a surplus.
	B.	Subsidized by the International Monetary Fund.
	C.	In deficit or tending toward a deficit.
	D.	A candidate for loans from the World Bank.
	E.	Unaffected.