The Demand for Foreign Currency in the United States Is

question 253

Multiple Choice

The demand for foreign currency in the United States is a

• A) direct demand.
• B) derived demand based on the demand for U.S. products.
• C) derived demand based on the demand for foreign products.
• D) direct demand based on the demand for U.S. dollars.

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Definitions:

Securities

Assets that denote a share in the equity of a corporation available on the public market (stock), a lending agreement with a government or corporate body (bond), or ownership claims evidenced by an option.

New York Federal Reserve Bank

One of the 12 regional Reserve Banks in the Federal Reserve System, playing a key role in monetary policy, financial supervision, and the payment system.

Federal Advisory Council

A group of individuals who provide advice and support to a central governing body, such as the Federal Reserve in the United States, on matters of economic policy.

Expansionary Monetary Policy

Monetary policy measures, such as lowering interest rates and increasing money supply, used by central banks to stimulate economic growth.