CFA Practice Question

There are 253 practice questions for this study session.

CFA Practice Question

Which approach focuses on the flows needed to achieve long-term equilibrium in the capital account?
A. Macroeconomic balance approach
B. External sustainability approach.
C. Reduced-form econometric model.
Explanation: It focuses on the stock of net external debt.

User Contributed Comments 2

User Comment
janis36 Macroeconomic balance approach focuses on reaching the equilibrium in current account. Current account is the mirror image of capital account, so I assumed that answer A is correct.
jiachenw Macroeconomic balance approach is for current account, while external sustainability approach is for capital account.
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