Asked by
haley harris
on Dec 16, 2024
Verified
Which of the following statements is true?
A) The demand for foreign currency in the United States increases as the volume of imports increases.
B) The demand for foreign currency in the United States increases as the volume of exports increases.
C) The demand for foreign currency in the United States decreases with a decrease in the inflation rate abroad.
D) The demand for foreign currency in the United States decreases as foreign interest rates rise.
E) The demand for foreign currency in the United States is unaffected by U.S.demand for foreign goods and services.
Foreign Currency
Refers to the money or legal tender issued by a country that is not one's own, used to conduct transactions in foreign countries.
- Recognize the variables that impact the demand and supply conditions in the forex market.
- Understand the dynamics between currency exchange rates and international trade.
Verified Answer
MM
Learning Objectives
- Recognize the variables that impact the demand and supply conditions in the forex market.
- Understand the dynamics between currency exchange rates and international trade.