The demand curve for foreign exchange:A) slopes downward.B) slopes upward.C) is horizontal,because no individual country can influence the price of foreign exchange.D) is vertical,because no individual country can influence the price of foreign exchange.E) may slope downward or upward depending on the volume of imports and exports of the trading countries.

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Jessica Evans · Accepted Answer

Final Answer : A, Explanation :  The demand curve for foreign exchange slopes downward because as the exchange rate for a country's currency increases, it becomes more expensive for foreign buyers to purchase goods and services from that country. This leads to a decrease in exports and a decrease in the demand for that country's currency for the purpose of purchasing goods and services, causing the demand curve for that currency to shift to the left.

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