1. When the BOP (balance of payment) accounts are recorded correctly, by BOP identity

a. Under fixed exchange rate regime, BCA (balance of current accounts) + BKA (balance of capital accounts) = - BRA (Balance of official reserve accounts).

b. Under fixed exchange rate regime, BCA (balance of current accounts) = - BKA (balance of capital accounts).

c. Under pure flexible exchange rate regime, BCA (balance of current accounts) + BKA (balance of capital accounts) = - BRA (Balance of official reserve accounts).

d. None of the above.

2. The SEC requires firms to provide a red herring to prospective investors during the IPO process.

True

False