When a country must make a net payment to foreigners because of a balance-of-payments deficit, the central bank of the country
A. Should do nothing
B. Should run down its official reserve assets (e.g. gold, foreign exchanges, and SDRs)
C. Should borrow anew from foreign central banks.
D. b) or c) will work
Answer:D
When a country must make a net payment to foreigners because of a balance-of-payments deficit, the central bank of the country
A. Should do nothing B. Should run down its official reserve assets (e.g. gold, foreign exchanges, and SDRs) C. Should borrow anew from foreign central banks. D. b) or c) will work