-The Table Above Gives Data for the Nation of Syldavia

question 92

Multiple Choice

$$\begin{array} { l c } \text { Balance of payments accounts } & \text { (billions of dollars) } \\\hline \text { Syldavia investment abroad } & 170 \\\text { Exports of goods and services } & 140 \\\text { Net transfers } & 0 \\\text { Change in official reserves } & 0 \\\text { Net interest } & 0 \\\text { Imports of goods and services } & 180 \\\text { Foreign investment in Syldavia } & 210 \\\hline\end{array}$$
-The table above gives data for the nation of Syldavia.The current account has a

• A) $40 billion deficit.
• B) $30 billion deficit.
• C) $40 billion surplus.
• D) $50 billion deficit.
• E) balance of $320 billion.

Be able to define and explain the significance of financial terms and instruments used in international finance such as cross-rates, Eurobonds, exchange rate risk, and swaps.

Understand and evaluate the impact of major financial policies and events (like the formation of the Euro) on international finance and currency trading.

Learn the mechanisms and implications of arbitrage in the context of international finance.

Acquire the ability to critically assess theories like the Fisher effect, purchasing power parity, and uncovered interest parity in real-world scenarios.

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