Question

One source of the supply of dollars in the foreign exchange rate market is Group of...

One source of the supply of dollars in the foreign exchange rate market is
Group of answer choices
the sale of U.S. domestic financial assets to foreigners.
imports of merchandise into the United States.
gold sold to foreigners.
the purchase of U.S. exports.
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Answer #1

The supply of dollars in the foreign exchange rate market is caused by the imports of merchandise into the United States. The foreigners will have to pay dollar amount in the foreign exchange rate market in return of the domestic financial assets of US.

Any resident of US who wants to make investment in other countries is also part of dollar supply in the foreign exchange rate market.

So, Option nd "imports of merchandise into the United States" is correct

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