QUESTION 1 When the domestic interest rate rises, select all of the following that are true: The financial account moves into surplus Foreign interest rates rise. The current account moves into deficit A foreign reserve increase would mitigate the change in fx QUESTION 2 Select all that are true regarding firm concerns in relation to the fx market: Firms with foreign operations are concerned about their reported performance on accounting reports Firms are concerned that a depreciation of the domestic currency will decrease the relative price of foreign- sourced substitutes decreasing domestic demand Firms are concerned about the relative price of foreign-sourced factors of production now and in the future since this could materially alter their decisions regarding which products to produce domestically Firms are concerned about foreign demand for their domestic production, which could lead to altering their mix of output at foreign and domestic plants