Use the Following to Answer Questions

question 169

Multiple Choice

Use the following to answer questions .
Exhibit: Foreign Exchange Market
-(Exhibit: Foreign Exchange Market) Who generates a demand for dollars in the foreign exchange market?

• A) U.S. residents who demand foreign goods, services, and assets.
• B) U.S. residents who demand domestically produced goods, services, and assets.
• C) Foreign residents abroad who demand U.S. goods, services, and assets.
• D) Foreign banks and citizens who wish to reduce their holdings of foreign currencies.

---

Definitions:

Stable National Government

A government that is consistently able to provide services, enforce laws, and maintain order without frequent changes or interruptions.

Economy

The system of production, distribution, and consumption of goods and services within a particular society or geographical area.