There is a fixed exchange rate regime assuming that all


There is a fixed exchange rate regime. Assuming that all accounts are balanced in the balance of payments, a sale of a local enterprise to a foreign buyer will create:

(a) A surplus in the capital account which will lead to an increase in reserves;

(b) A surplus in the capital account which will lead to a fall in reserves;

(c) A deficit in the capital account which will lead to a surplus in the current account;

(d) A deficit in the capital account which will lead to a fall in reserves.

Request for Solution File

Ask an Expert for Answer!!
Business Economics: There is a fixed exchange rate regime assuming that all
Reference No:- TGS01475626

Expected delivery within 24 Hours