True or False?

1. The demand for foreign goods implies supplying the domestic currency.

2. If a nation's currency rises in value, foreigners can purchase more of that nation's output.

3. The devaluation of one currency implies a revaluation of other currencies.

4. If the American dollar is devalued, American goods are more expensive to people holding dollars.

5. The International Monetary Fund may lend currency reserves to a nation with a deficit in its merchandise trade balance.

6. The political climate abroad will affect the risk associated with foreign investments.