A country's overall BoP balance is a surplus of $25 billion. Its foreign exchange reserves

fall by $25 billionCorrect answerYour answerdo not changeCorrect answerYour answerrise by $25 billionCorrect answerYour answerrise by $50 billionCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer C

Correct answer: C

A surplus means more foreign exchange came in than went out; the extra is added to reserves.

Concept: Surplus and reserves
Typical timeTypical: 40 s
Your timeYours: —

The rule this testsAutonomous and accommodating; BoP deficit

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Ten questions from Balance of Payments, at your own pace.

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Ten questions from Balance of Payments, at your own pace.

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A country's overall BoP balance is a surplus of $25 billion. Its foreign exchange reserves

Explanation