If There Is a Small Surplus in the Combined Current

question 66

Multiple Choice

If there is a small surplus in the combined current account plus capital and financial account for a certain year, then to make the two accounts balance there will be:

• A) An increase in the exchange rate
• B) A decrease in the exchange rate
• C) An increase in official reserve holdings
• D) A decrease in official reserve holdings

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Definitions:

Relatively Shallow

Describes an area of water or feature that is not deep compared to its surroundings.

Fracturing

The act or process of breaking or cracking solid materials, often referring to rocks splitting due to physical, chemical, or mechanical forces.

Brittle Conditions

Scenarios in which rocks fracture or break apart rather than deform plastically when subjected to stress, typically occurring at shallower depths.

Relatively Shallow

Describes an area, feature, or process that occurs at a minor depth beneath the surface or water.