The demand for U.S. dollars in the foreign exchange market is determined by all of the following except
A. American demand for American products.
B. Europeans who would rather hold U.S. dollars than euros.
C. Foreign demand for American investments.
D. Foreign demand for American exports.
Answer: A
You might also like to view...
Which of the following observations is not true?
A. Demand curve of the perfectly competitive firm is perfectly elastic. B. There is only one price for a product in a perfectly competitive market. C. A firm in a perfectly competitive market can sell as much as it wants at market price. D. Demand curve of the perfectly competitive industry is perfectly elastic.
In the factor payments approach to GDP, owners of capital receive
a. wages b. salaries c. rent d. interest e. profit
A financial strategy that reduces the chance of suffering losses arising from foreign exchange risk is referred to as
A) hedging. B) foreign exchange leverage. C) conversion depletion. D) transaction mitigation.
Which one of the following is TRUE?
A. The intersection of aggregate demand and aggregate supply identifies an equilibrium level of employment and an equilibrium level of investment. B. The intersection of aggregate demand and aggregate supply identifies an equilibrium interest rate and an equilibrium level of exports. C. The intersection of aggregate demand and aggregate supply identifies an equilibrium price level and an equilibrium level of real GDP. D. The intersection of aggregate demand and aggregate supply identifies an equilibrium interest rate and an equilibrium wage level.