- CFA Exams
- CFA Level I Exam
- Topic 2. Economics
- Learning Module 8. Currency Exchange Rates: Understanding Equilibrium Value
- Subject 5. The Impact of Balance of Payments Flows
CFA Practice Question
Which condition, via exchange rate adjustments, will help a country restore its balanced current account?
B. High sensitivities of import and export prices to changes in the exchange rate.
C. Low price elasticities of import and export demand.
A. A narrow gap between exports and imports.
B. High sensitivities of import and export prices to changes in the exchange rate.
C. Low price elasticities of import and export demand.
Correct Answer: B
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