Solved

When a Country Has "Exorbitant Privilege," It Has the Ability

Question 42

Multiple Choice

When a country has "exorbitant privilege," it has the ability to:


A) lend at higher interest rates because there is a low risk that it will default on the loans.
B) maintain constant exchange rates while incurring changes in the current account.
C) borrow at lower interest rates than other countries because assets in its currency are sought.
D) maintain a current account surplus at the same time as a capital account surplus.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents