Help on this question Background information: Surfland is a small idyllic imaginary island country in the Indian Ocean known abroad for its awesome waves and diving. Surfland imports everything. The country's only two natural resources are its swells and scuba diving spots. The table below provides Surfland's current account (CA) and primary balances (PB) as a % of its GDP for this decade ( - is a negative sign, p refers to projected). Year CA PB 2009 -6.819587063 -0.628513667 2010 -8.439476065 -3.034951476 2011 -7.702093889 -4.14343361 2012 -8.859399263 -1.592025125 2013 -11.47659044 -1.643706048 2014 -15.17510008 -2.380971958 2015 -15.12645457 -5.578890904 2016 -12.33898546 -10.34041146 2017 -11.35067704 -5.657472817 2018 -9.990428153 -3.439651974 2019 p -3.826582026 -4.388315698 2020 p -2.041407064 -9.586195026 You work as a country risk analyst for SURE (Sustainable Reefs - a maker of artificial reefs, which is great for replenishing ecosystems and creating surfing spots) and heard that over-crowding of surfing and diving spots have decrease foreign interest on Surfland as a prime tourist destination. Surfland's president Kelly Medina wants to change this. He is offering your company a 30 year concession for a beach resort focused on surfing and scuba if the company invests in installing artificial reefs and charges entry fees in the local currency - the surfwax. Part A. Given the information provided about Surfland, which from the following risks below you would highlight to the company's president as the most important: A.Exchange rate risk given a possible appreciation of the surfwax currency in the near future B.Exchange rate risk given a possible devaluation / depreciation of the surfwax currency in the near future C.Fiscal risks given a possible tax cut in Surfland in the near future D.Interest rate risk given a possible further cut of the federal fund rate by the FED Part B. You arranged for a fact finding mission to Surfland. During the mission you find out that the country has no deep domestic debt market. Your boss asks you how Surfland has been financing its current account deficit for over a decade. Your answer is A.Probably borrowing from abroad in foreign currency B.Probably cutting the domestic money supply C. Probably borrowing from loan sharks in surfwax currency D. Probably decreasing taxes