The_________ the Expected Profit from Holding a Foreign Currency, the Greater

question 240

Multiple Choice

The_________ the expected profit from holding a foreign currency, the greater is the _________in the foreign exchange market.

• A) larger; quantity supplied of dollars
• B) smaller; quantity demanded of foreign currency
• C) larger; quantity demanded of dollars
• D) None of the above is correct because the expected profit has nothing to do with the supply and demand for dollars or foreign currency.

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