True or False

1. Under the floating exchange rate regime, a country can simultaneously have current account and capital account deficits.

2. An increase in the demand of British assets by US investors would be expected to cause an increase in the supply of Canadian dollars and an increase in the $/ exchange rate. 3)Under

3. Under the fixed exchange rate regime any current account deficit must be financed by trade balance surplus. ________

4. The BID exchange rate can be higher than the ASK exchange rate when the currency is expected to appreciate.