Currency Traders Expect the Value of the Dollar to Rise

question 123

Multiple Choice

Currency traders expect the value of the dollar to rise.What effect will this have on the demand for dollars and the supply of dollars in the foreign exchange market?

• A)Demand for dollars will increase,and supply of dollars will decrease.
• B)Demand for dollars will increase,and supply of dollars will increase.
• C)Demand for dollars will decrease,and supply of dollars will increase.
• D)Demand for dollars will decrease,and supply of dollars will decrease.

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Definitions:

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