1. Capital movements between countries are classified either as current account or capital account movements. Current account movements refer to payments for imports and exports, as well as the payment of interest and dividends. During any year, a given country will have either a surplus or a deficit of current account transactions. Capital account movements refer to the purchase or sale of securities in one country by citizens of another country. Such transactions will also result in a net surplus or deficit for a given country. A net deficit of both current account and capital account transactions represents the net financial resources that have flowed out of a country; a net surplus represents the financial resources that have flowed into a country.
2. Each country has its own currency in which it will demand payment for net surpluses. Germany, for example, uses marks, Belgium uses Belgian francs, and France uses French francs. The value of one currency relative to another depends on which country has a net deficit to the other. If the United States, for instance, has a net deficit to France, the value of the French franc will rise relative to the dollar. This relative value is indicated by the exchange rate, which represents the cost of one unit of a given currency in terms of another. For example, an exchange rate of 43 cents per mark means that 43 cents must be paid to obtain one mark, while about 2.3 marks would obtain $1.
VI. Определите, являются ли приведенные ниже утверждения (1, 2, 3):
а) истинными (true)
б) ложными (false)
c) в тексте нет информации (no information)
1. A net surplus represents the natural resources.
2. A national account is a major account with a nationwide business.
3. The relative value is indicated by the exchange rate.
VII. Прочитайте абзац 2 и ответьте письменно на следующий вопрос:
What does the exchange rate represent?