Which One of the Following Would Create a Demand for a Foreign

question 99

Multiple Choice

Which one of the following would create a demand for a foreign currency and supply of dollars in the foreign exchange market?

• A) the sale of U.S. automobiles to a Mexican consumer
• B) the spending by British tourists in the United States
• C) the purchase of 1,000 shares of IBM stock by a Latin American investor
• D) the purchase of Japanese televisions by an American distributor

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Definitions:

Fixed Component

The part of total costs in a business that remains constant regardless of the level of production or business activity.

Least-Squares Regression

A statistical method used to determine the line of best fit by minimizing the sum of the squares of the vertical distances of the points from the line.

Units Produced

The total quantity of finished goods a company manufactures in a specific period.

Fixed Component

A cost or portion of cost that remains unchanged regardless of the level of output or activity.