Answer the following statements true (T) or false (F)

1) A system of fixed exchange rates is more likely to result in exchange controls than is a system of flexible (floating) exchange rates.
2) A nation that imports more goods and services than it exports is necessarily realizing an
international balance of payments deficit.
3) The United States has had significant trade and current account surpluses in recent years.
4) A current account deficit will reduce U.S. foreign indebtedness.

1) T
2) F
3) F
4) F