The transition to floating exchange rate regimes in the 1970s (described in Chapter .3) changed the focus from the total BOP to its various subaccount like the current and financial account balances.

Question

Quizplus · Accepted Answer

The statement is true. Prior to the floating exchange rate regimes in the 1970s, the focus was on the total balance of payments. With the transition, the focus shifted towards the specific subaccounts such as the current and financial account balances.

The Transition to Floating Exchange Rate Regimes in the 1970s