In the context of balance of payments (BOP),a country experiencing a current account surplus:
A) will see its currency appreciate.
B) has to be financed by purchase and sales of assets.
C) will see a decrease in exchange rates.
D) will experience a decrease in demand for its currency.

Question

Quizplus · Accepted Answer

A current account surplus indicates that a country is exporting more than it is importing, leading to higher demand for its currency, which typically causes the currency to appreciate.

In the Context of Balance of Payments (BOP),a Country Experiencing