Which One of the Following Would Create a Demand for a Foreign

question 99

Multiple Choice

Which one of the following would create a demand for a foreign currency and supply of dollars in the foreign exchange market?

• A) the sale of U.S. automobiles to a Mexican consumer
• B) the spending by British tourists in the United States
• C) the purchase of 1,000 shares of IBM stock by a Latin American investor
• D) the purchase of Japanese televisions by an American distributor

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Definitions:

Producers' Income

The earnings or revenue received by the producers or firms from the sale of goods or services before the deduction of any expenses.

Surplus

An excess amount of a commodity or service, exceeding what is normally utilized or required.

Government

The governing body of a nation, state, or community responsible for leadership, policy making, and administration.

Ethanol Program

A governmental policy initiative aimed at promoting the use of ethanol as a biofuel, to reduce dependency on fossil fuels and decrease greenhouse gas emissions.