If the Swiss Demand for Dollars Is Inelastic,an Appreciation of the Dollar

question 40

True/False

If the Swiss demand for dollars is inelastic,an appreciation of the dollar against the franc will lead to a greater quantity of francs being supplied to the foreign exchange market to obtain dollars.

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Definitions:

Exchange Rate

The rate at which one currency can be exchanged for another, often influenced by factors such as economic conditions, interest rates, and geopolitical stability.

International Customer

A customer who resides in a different country from where the goods or services are produced or sold.

Available-for-sale Securities

Financial assets that are neither classified as held-for-trading nor held-to-maturity, which can be sold in the short-term for cash or held till maturity.

Trading Securities

Investments in debt or equity securities bought and held primarily for selling them in the short term to generate income on short-term price differences.