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Reason for a Zero Balance

Exchange Rates

Exchange Rates

Exchange rates are constantly fluctuating to ensure that the quantity of currency supplied equals the quantity demanded. Because of this, the inflows and outflows of money are equal, creating a balance of payments equal to zero.

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    "Exchange rates."
    http://commons.wikimedia.org/wiki/File:Exchange_rates.JPG Wikimedia Public domain.

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  • foreign exchange
  • net exports
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