CFA Practice Question

There are 253 practice questions for this study session.

CFA Practice Question

If the U.S. runs a large current account deficit, global investors may reduce their holdings of U.S. dollar denominated assets and thus cause U.S. dollar to depreciate. This is the theory of:

A. The asset preference channel.
B. The debt sustainability channel.
C. The portfolio balance channel.
Correct Answer: B

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