When a country operates with a currency board, the central bank's sole objective is to maintain the   Multiple Choice flexibility of domestic monetary policy. domestic interest rate. exchange rate. target inflation rate.

You work for the Bureau of Economic Analysis (BEA) of the U.S. Department of Commerce. Your supervisor gives you the following U.S. International Transactions Accounts for the Year 20XX (figures are in billions of dollars) and wants it reported in a coherent fashion in accordance with accepted conventions: Investment income payments (27.3); Export of goods 80.6; Balance of services 5.1; Capital outflow (44.5); Imports of goods (110.9); Change in Official Reserves 2; Investment income receipts 24.7; Capital inflow 73.6; Net unilateral transfers (3.3). (a) He wants you to compute the balances of trade, current account, capital account and statistical discrepancy. (b) He also wants you to find out (based on your calculation) if the U.S. is a net debtor or a net creditor and  why

How do central bank digital currencies (CBDCs) influence traditional monetary policy tools, and what implications might their widespread adoption have on international financial stability and cross- border payments?

Using the Mundell - Fleming short-run model of a small and open economy, with well-labeled diagrams, predict what would happen to i) income, ii) interest rate, iii) consumption, iv) investment, v) exchange rate, and vi) trade balance of the US economy, in response to each of the following shocks under flexible exchange rate system i) banks decide to loan out less funds ii) more foreigners visit US