Equilibrium in the Foreign Exchange Market Implies Equilibrium in the Balance

question 12

True/False

Equilibrium in the foreign exchange market implies equilibrium in the balance of payments.

---

Definitions:

Mortgage

A loan used to purchase real estate, secured by the property itself.

Outstanding Balance

The amount of money owed that has not yet been paid by the debtor.

Savings Account

A bank account that earns interest and is typically used for holding money that is not intended for daily expenses.

Accumulated Amount

The total sum including the principal and the compounded interest over a period.