1. True of false. If false, explain in a few sentences.
(1) When a country experiences net capital inflow, its capital account will be in deficit and current account in surplus.
(2) According to the Interest Parity Condition, if the interest rate is 2% in the U.S. and 5% in the U.K., investors are expecting a capital loss from holding the dollar.
(3) Margin accounts are required for trading in forward, futures and options contracts.