If a Country Has a Flexible Exchange Rate System and a Deficit

question 11

Multiple Choice

If a country has a flexible exchange rate system and a deficit on current account

• A)the balance of payments must be zero.
• B)The balance of payments must be positive.
• C)The balance on capital account must be negative.
• D)The balance on capital account must be positive.

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Definitions:

Behavior Therapy

A form of psychotherapy that focuses on changing negative behaviors into positive ones through various techniques.

Psychological Disorders

Mental health conditions characterized by persistent changes in mood, behavior, and cognitive functions, impacting daily life.

Psychological Health

The aspect of overall health that involves emotional, psychological, and social well-being, affecting how we think, feel, and act.

Negative Thoughts

Automatic and pessimistic assessments about oneself, one's future, or the world, often associated with depressive and anxiety disorders.