When the Supply of a Domestic Currency Increases While Demand

question 73

Multiple Choice

When the supply of a domestic currency increases while demand simultaneously decreases, that currency tends to _____ against other currencies.

• A) stabilize
• B) equal out
• C) appreciate
• D) depreciate

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Definitions:

Quota

A direct limit on the number of goods that can be imported into or exported from a country

Influx

Refers to the arrival or entry of large numbers of people or amounts of goods into a place.

Foreign Goods

Products or services produced in one country and sold in another.

Capital Account

An account of a country’s transfer of capital to or from other countries.