Question

Under an international regime of fixed exchange rates, countries with a BOP ________ should consider ________ their currency while countries with a BOP ________ should consider ________ their currency. A. surplus, revaluing; deficit, devaluing B. surplus, devaluing; deficit, revaluing C. deficit, devaluing; surplus, devaluing D. deficit, revaluing; surplus, revaluing

Answer 1

Answer:

The correct option is A

Explanation:

BOP termed for the Balance of Payment, which is a record or the details of the all transactions of economy among the resident of the country with the rest of the world for a specific period or time.

So, when the BOP is in surplus, means boosts the economic growth so should consider revaluing the currency and the countries with BOP deficit, does not boost the economic growth, so should consider the devaluing the currency.