A Country Running a Current Account Surplus Over Many Years

question 8

Multiple Choice

A country running a current account surplus over many years is likely to see its exchange rate:

• A) appreciate.
• B) depreciate.
• C) hold steady.
• D) the rate can rise, fall, or hold steady; the current account and the exchange rate are not linked.

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Definitions:

DVDs

Digital Versatile Discs, a type of optical storage media used for holding video, audio, and other data, which have now largely been superseded by streaming services.

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The financial gain received by an individual or entity, typically through work, investments, or other revenue sources.

Pretzels

Salted or unsalted baked snacks known for their twisted knot shape, originating from Europe.

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A sweetened beverage made from lemon juice, water, and sugar, often consumed as a refreshing drink.