If There Are No Transactions in the Official Financing Account

question 40

Multiple Choice

If there are no transactions in the official financing account of a country's balance of payments,it is likely that

• A)the central bank has pegged the exchange rate so that the current and capital accounts sum to zero.
• B)the exchange rate is being determined freely in the foreign-exchange market.
• C)this country must not be engaging in international trade.
• D)there must be a disequilibrium in the foreign-exchange market.
• E)this country has a pegged exchange rate and persistent surpluses on its balance of payments.

---

Definitions:

Business Communication

The sharing of information within an organization for commercial benefits, encompassing various methods including meetings, emails, reports, and presentations.

Three-Step Process

A procedure or method that is divided into three sequential stages or phases to achieve a particular goal or solve a problem.

Developing Blogs

The process of creating, writing, and managing blog content to engage with a target audience.

Completing Your Blog

The process or action of finishing the creation, writing, and updating of blog content.