Under a System of Flexible Exchange Rates,balance-Of-Payments Deficits and Surpluses

question 36

Multiple Choice

Under a system of flexible exchange rates,balance-of-payments deficits and surpluses show up

• A) in a country's central bank purchases and sales of foreign currencies.
• B) in gold flows into and out of the country.
• C) as changes in exchange rates rather than as central bank transactions.
• D) as the net difference between debit and credit items in the balance of payments accounts.
• E) in the unilateral transfer account in the balance-of-payments accounts.