True/False (3)

_____ In the US, the capital account surplus is roughly equal to the current account deficit in magnitude

_____ If the Interest rate parity holds, then there is no change in the real exchange rate.

_____ A Japanese firm sells TV sets to an American importer for one billion yen payable in 90 days. To protect against exchange risk, the exporter (Japanese firm) could sell yen on the forward market

_____ If the dollar increases in real value. A US firm competing against a US export firm will be worse off.

_____ Europeans buying American T-bills shows up on both US and European capital accounts.

_____ Americans saving more money would make the capital account run more of a surplus