Why Does Anyone Demand Foreign Currency

question 105

Multiple Choice

Why does anyone demand foreign currency?

• A)International trade in goods and services
• B)International trade in financial assets
• C)Purchases of physical assets overseas
• D)All of the above are correct.

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Definitions:

Infrastructure Costs

Expenses associated with the basic physical and organizational structures needed for the operation of a society or enterprise, such as roads, telecommunications, and utilities.

Drug Costs

The expenses associated with purchasing medications, which can include the price of the drug itself, pharmacy fees, and related healthcare provider costs.

Hospital Costs

Denotes the expenses associated with operating a hospital, including medical supplies, labor, and administrative costs.

Defined-benefit Plan

A type of pension plan in which an employer promises a specified pension payment upon retirement, based on an employee's earnings history, tenure of service, and age.