When the current account balance is ______ and the financial account balance is ______, then the statistical discrepancy will be $100 billion.

Which of the following statements is true of Black Wednesday?

A) Following Black Wednesday, the British pound became less valuable relative to the German mark. B) Currency traders who had borrowed pounds to buy German marks incurred huge losses due to Black Wednesday. C) The British government earned enormous profits by selling foreign currency reserves following Black Wednesday. D) Following Black Wednesday, the British pound became more valuable relative to the German mark.

Under a fixed exchange rate regime, if a country's central bank runs out of international reserves, it cannot keep its currency from

A) depreciating. B) appreciating. C) deflating. D) inflating.