(Answered) 1 what are the components of the current account of the

Engineering

1. What are the components of the current account of the balance-of-payments? The capital account of balance-of-payments? Make sure to illustrate your understanding of the concept by providing a thorough explanation with an example.

2. Concerning the balance of international indebtedness, when is a country a net creditor or a net debtor?

3. Is it possible to trade foreign exchanges in the future markets? How does such trading differ from the forward market?

4. Identify the long-run determinants of exchange rates and the short-run determinants of exchange rates. In a free market, what determines exchange rates in the long-run and the short-run?

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