If the United States Experiences an Increase in Foreign Exchange

question 209

Multiple Choice

If the United States experiences an increase in foreign exchange reserves,

• A) the net transfers line in the balance of payments statement will increase.
• B) it will also realize a decrease in the domestic supply of dollars.
• C) this will appear as a positive item in the U.S. balance of payments statement.
• D) this will appear as a negative item in the U.S. balance of payments statement.