Consider a Country That Is Operating Under a Fixed Exchange-

question 78

Multiple Choice

Consider a country that is operating under a fixed exchange- rate system. The country's balance of payments will always show total debits equal to total credits because

• A)any official financing required to maintain the fixed exchange rate will offset any deficit or surplus in the rest of the balance of payments accounts.
• B)fluctuations in interest rates will bring debits and credits into equality.
• C)fluctuations in exchange rates will bring debits and credits into equality.
• D)short- term capital flows will always offset any deficit or surplus in current accounts and long- term capital accounts.
• E)the official financing account will always offset a deficit or surplus in the current account.

---

Definitions:

Ability to Adapt

The capacity to adjust to new conditions or environments, showing flexibility and resilience.

Educational Background

The formal schooling or training an individual has received, often influencing their skills, knowledge, and career opportunities.

Job Skills

The expertise or talent needed to perform specific tasks and duties proficiently in the workplace.

Peak Performance

The state of functioning at one's maximum capacity, producing the highest standard of work or outcomes in any given task or activity.