Which of the Following Would Cause the Current Account to Decrease

question 71

Multiple Choice

Which of the following would cause the current account to decrease?

• A)an increase in the nominal exchange rate,E
• B)an appreciation of the home currency
• C)an increase in disposable income
• D)an increase in foreign prices,P
• E)a decrease in domestic prices,P

Understand the concept of privity of contract and its exceptions.

Comprehend the distinction between intended and incidental beneficiaries and their rights.

Recognize the impact of transferring rights or duties on the original parties’ obligations and rights.

Understand the legal requirements and formalities for the valid assignment and delegation of contracts.

---

Definitions:

Market Interest Rate

The prevailing rate of interest being offered on deposits and loans in the market, influencing how much borrowers pay and lenders earn.

Yield to Maturity

Yield to Maturity (YTM) is the total return anticipated on a bond if the bond is held until the date it matures, accounting for interest payments and principal recovery.

Par Value

The face value of a bond or stock as stated by the issuing company, not necessarily its market value.

Annual Coupon

The annual interest payment made to bondholders, typically fixed and expressed as a percentage of the bond's face value.