Which of the Following Statements About the Supply of Dollars

question 21

Multiple Choice

Which of the following statements about the supply of dollars in the foreign exchange market is TRUE?

• A) It is equal to the money supply.
• B) It represents the demand for U.S. goods and financial assets by firms and households outside the United States.
• C) It represents the supply of U.S. goods and financial assets by firms and households within the United States.
• D) It is determined by the willingness of households and firms that own dollars to exchange them for foreign currency.

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