Under the Fixed Exchange Rate Regime

question 88

Multiple Choice

Under the fixed exchange rate regime,

• A)the combined balance on the current and capital accounts will be equal in size,but opposite in sign,to the change in the official reserves.
• B)the balance on the current and capital accounts will be equal in size,but opposite in sign.
• C)a current account surplus or deficit must be matched by an official reserves deficit or surplus.
• D)a capital account surplus or deficit must be matched by an official reserves deficit or surplus.

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