When a currency is overvalued, international reserves ________ and the country has a balance-of-payments ________.

Suppose that domestic personal computer firms complain to Congress that cheap exports are driving them out of business. Congress, worried about job losses, decides to restrict trade, and is considering either a tariff or a quota on imported personal

computers. a . Explain which Congress will choose if it wants to restrict trade, yet please importers. b. Explain which Congress will choose if it wants to use the restriction as a source of revenue. c. How do tariffs and quotas differ?

Primary reserves are held in the form of ____ and ____; secondary reserves are held in the form of _____.

Fill in the blank(s) with the appropriate word(s).