When the Exchange Rate Falls, in the Foreign Exchange Market

question 136

Multiple Choice

When the exchange rate falls, in the foreign exchange market the

• A) quantity demanded of the currency increases.
• B) demand for the currency increases.
• C) quantity demanded of the currency decreases.
• D) demand for the currency decreases.

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Definitions:

Commercial

A promotional advertisement, typically broadcast on television or radio, intended to inform or persuade an audience about a product or service.

Value Proposition

The unique value that a product or service provides to its customers and how it is better than and different from those of competitors.

Product

Anything that is of value to a consumer and can be offered through a voluntary marketing exchange.

Price

The overall sacrifice a consumer is willing to make—money, time, energy—to acquire a specific product or service.