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The demand for foreign exchange by an importer is a demand derived from a pending economic transaction.

A) True
B) False

Correct Answer

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Capital flight from a country tends to reduce the value of the country's currency relative to other countries.

A) True
B) False

Correct Answer

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In balance of payments accounting, a deficit in the current account may be offset by a surplus in the financial accounts.

A) True
B) False

Correct Answer

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If an investor can obtain more euros for a dollar in the forward market than in the spot market, then the euro is said to be selling at a discount to its spot rate.

A) True
B) False

Correct Answer

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