Suppose Canada and Switzerland were the only two countries in the world There exists an excess supply of Swiss francs on the foreign exchange market This suggests that ?

Question

Suppose Canada and Switzerland were the only two countries in the world There exists an excess supply of Swiss francs on the foreign exchange market This suggests that ?

Answer 1

A. the Canadian current account balance is in surplus
B. the Swiss current account balance is in deficit
C. the Canadian current account balance is in equilibrium
D. the Swiss current account balance is in equilibrium

Correct Answer: the Swiss current account balance is in deficit ✔

Last Updated: June 11, 2019