When a country ’s current claims are less than current liabilities, i.e. foreign exchange receivables are less than foreign exchange payables, there will be()


When a country ’s current claims are less than current liabilities, i.e. foreign exchange receivables are less than foreign exchange payables, there will be()

A.The supply of foreign exchange is less than the demand of foreign exchange, and the local currency depreciates.

B.The supply of foreign exchange exceeds the demand of foreign exchange, and the local currency depreciates.

C.The supply of foreign exchange is greater than the demand for foreign exchange.

D.The supply of foreign exchange is less than the demand of foreign exchange, and the domestic currency appreciates.

正确答案:The supply of foreign exchange is less than the demand of foreign exchange, and the local currency depreciates.