Answer Happy

Ture Or F
If exports are payable in dollars while imports require
payment in foreign currency, a change in the nominal exchange rate
automatically transfers into a change in the price of imported
goods relative to local goods.
Eurobanking have grown rapidly because of lack of
regulation and con
sequent opportunity for Eurobanks to pay slightly higher
deposit rates
and make international loans at slightly lower loan
rates.
If the balance on current account is positive (a
surplus), adjustment of
the balance to zero would usually require the real
exchange rate to rise
The variability of real exchange rates has been
much greater when a
country adopts of fifixed exchange rates (as under the
Bretton-Woods
system) than when it flfloats its nominal exchange
rate.