Under a Flexible Exchange Rate System, the Rate That Equates

Multiple Choice

Under a flexible exchange rate system, the rate that equates demand and supply in the exchange rate market also equates the

A) value of the nation's merchandise exports with the value of its merchandise imports.
B) value of the nation's purchases of goods, services, and assets from foreigners with the value of the nation's sales of these items to foreigners.
C) debit and credit items on current account transactions.
D) debit and credit items on capital account transactions.