Holding Official Reserves Constant,a Deficit in the Current Account Means

question 167

True/False

Holding official reserves constant,a deficit in the current account means a surplus in the capital account.

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Definitions:

Dollar/Yen Market

The foreign exchange market involving the trading of US dollars and Japanese yen.

Appreciate

To increase in value or price, often in the context of financial investments or currency valuations.

Current Account Deficit

is a measurement of a country's trade where the value of the goods and services it imports exceeds the value of the products it exports.

Foreign Indebtedness

The total amount of debt a country owes to foreign creditors.