Under a Floating Exchange Rate System with Mobile International Capital

question 114

Multiple Choice

Under a floating exchange rate system with mobile international capital, it is always true that current account

• A)deficit + capital account surplus = trade deficit.
• B)surplus − capital account surplus = trade deficit.
• C)surplus + capital account deficit = 0.
• D)surplus − capital account surplus = 0.

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Definitions:

Regio-

A prefix in organic chemistry indicating the region or orientation of a chemical reaction or structure on a molecule.

Stereochemical

Pertaining to the spatial arrangement of atoms within molecules and the impact of this arrangement on chemical properties and reactions.

Regio-

A prefix denoting the region or position in a molecule where a chemical reaction occurs, often used in the context of regioselectivity.

Anti-Markovnikov Addition

A type of chemical addition reaction where the substituent is added to the less substituted carbon atom in a double bond or alkyne.