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Which Statement Is TRUE

Question 14

Multiple Choice

Which statement is TRUE?


A) The financial account balance is the negative of the current account balance.
B) A country's balance on current account will be less than its balance on financial account if exchange rates are allowed to float freely.
C) If the market for a nation's currency is in equilibrium, a financial account surplus necessarily means a current account surplus.
D) Exchange rates don't affect either financial accounts or current accounts.

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