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
One source of the supply of dollars in the foreign exchange rate market is Group of...
answer these 4 . will rate after A reduction in the British interest rate relative to the U.S. interest rate will cause a(n): appreciation of the dollar and an appreciation of the British pound. O appreciation of the dollar and a depreciation of the British pound. depreciation of the dollar and an appreciation of the British pound. O depreciation of the dollar and a depreciation of the British pound. A decrease in preference for Japanese automobiles, all else the same,...
The graph below shows demand and supply curves for U.S. dollars in the foreign exchange market. As you can see, the exchange rate (in terms of foreign currency units per dollar) is initially equal to E0. Suppose that next year there’s a huge increase in the number of foreigners – from Europe, China, and everywhere else – who decide to visit the U.S. as tourists. How would this huge increase in tourism in the U.S. affect the exchange rate? To answer this,...
answer these 4 . will rate after Which of the following increases the price of the dollar relative to the Mexican peso? o an increase in the demand for dollars an increase in the supply of dollars O an increase in the demand for pesos an increase in the supply of pesos If a Germany company must purchase products from a U.S. firm, it must first O convert its euros into US dollars in the foreign exchange market. O convert...
In an open economy, what is the source of demand for dollars in the foreign-currency exchange market? Net exports Net capital outflow National saving Imports
answer these 4 . will rate after If the prices in the United States decrease compared to other countries, we would expect o the demand for dollars to increase because U.S. goods are cheaper. the demand for dollars to decrease because U.S. goods are more expensive. the supply of foreign currency in the foreign exchange rate markets to decrease. the demand for foreign currency in the foreign exchange rate markets to increase. We were unable to transcribe this imageThe supply...
The exchange rate for a foreign currency that is determined by supply and demand is Group of answer choices a constrained exchange rate. a floating exchange rate. a fixed exchange rate. a controlled exchange rate.
1. The quantity of U.S. dollars that traders plan to sell in the foreign exchange market in a given period of time is independent of ______. A. the expected future exchange rate B. the price of gold C. the exchange rate D. U.S. demand for imports 2. Between 2014 and 2015, traders expected the U.S. dollar to ______ against the euro and it ______. A.appreciate; depreciated B.appreciate; did appreciate C.depreciate; did depreciate D.depreciate; appreciated Between 2001 and 2008, traders expected...
An appreciation of the exchange value of the U.S. dollar would: Group of answer choices A.increase the dollar prices of U.S. imports and the foreign cost of exports from the U.S. B.decrease the dollar prices of U.S. imports and the foreign cost of exports from the U.S. C.increase the dollar prices of U.S. imports, but decrease the foreign cost of exports from the U.S. D.decrease the dollar prices of U.S. imports, but increase the foreign cost of exports from the...
1. If the exchange rate of the dollar relative to other currencies is determined by market forces, a. the purchases of Americans from foreigners will be equal to the sales of Americans to foreigners. b. Americans will gain from the international trade only if foreigners lose an equal amount. c. the gains of Americans from international trade will be just equal to the gains of foreigners from the trade. d. imports from foreigners will create jobs in other countries but...
2. Introduction to the foreign-currency exchange market In an open economy, what is the source of supply in the foreign-currency exchange market? Net exports Exports Net capital outflow Investment and net capital outflow