Suppose the balance on the financial account is +$200 billion and the balance on the capital account is +$2 billion. The size of the current account is:

If Mexico has foreign assets worth $100 billion and no liabilities, a 15% depreciation of the peso will result in a(n):

A) increase in liabilities at home by 100 billion pesos. B) decrease in assets at home by 150 billion pesos. C) decrease in overall wealth by 15%. D) increase in overall wealth.

Which of the following statements is TRUE?

A) Bank failure is limited to banks that have mismanaged their assets. B) Bank failure is limited to banks that have invested in real estate. C) Bank failure is limited to banks that have invested in government bonds. D) Bank failure is limited to a few banks. E) Bank failure is NOT limited to banks that have mismanaged their assets.