If a transaction in the balance of payments of Country A enters the foreign exchange market, then it is fair to say that:
a. Sources of funds in Country A's balance of payments are supplies of Country A's currency.
b. Sources of funds in Country A's balance of payments are demands for Country A's currency.
c. Uses of funds in Country A's balance of payments are demands for Country A's currency.
d. Transactions in Country A's balance of payments have no counterpart in the foreign exchange market.
.B
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The long-run effect of a decrease in household consumption is to lower
a) the price level and leave real output unchanged. b) real output and leave the price level unchanged. c) both real output and the price level. d) real output and raise the price level.
Which of the following is classified as an asset for a commercial bank customer?
A) A car loan B) A commercial loan C) Demand deposits D) Deposits with the Federal Reserve