- CFA Exams
- CFA Exam: Level I 2021
- Study Session 5. Economics (2)
- Reading 18. Currency Exchange Rates
- Subject 6. Exchange Rates, International Trade, and Capital Flows
CFA Practice Question
A trade surplus means ______
II. the country must reduce its net financial claims on the rest of the world.
III. there must be a capital account deficit.
I. the country does not save enough to fund its investment spending.
II. the country must reduce its net financial claims on the rest of the world.
III. there must be a capital account deficit.
Correct Answer: III only
A trade surplus means the country saves enough to fund its investment.
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