Which Item Is NOT a Determinant of the Demand for Foreign

question 85

Multiple Choice

Which item is NOT a determinant of the demand for foreign currency?

• A) a desire for foreign goods and services
• B) income
• C) the exchange rate
• D) inflation

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Definitions:

Dividend Discount Model

A method of valuing a company's stock price based on the theory that its stock is worth the sum of all its future dividend payments, discounted back to their present value.

Telecommunications

The transmission of signals, messages, words, writings, images, and sounds or information of any nature by wire, radio, optical, or other electromagnetic systems.

Market Price

The market price is the amount for which something can be sold on a given market, reflecting supply and demand dynamics at a specific point in time.

Residual Claimant

An individual or entity entitled to make a claim on the residual value of an entity's assets after all liabilities have been paid in the event of a liquidation.