The ________ the Expected Profit from Holding a Foreign Currency

question 106

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

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