If Currency Traders Expect the Value of the Dollar to Rise

question 9

Multiple Choice

If 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:

Focus Group Discussions

A qualitative research method involving guided discussions with a small group of people to explore their perceptions, opinions, beliefs, and attitudes towards a particular topic.

Focus Groups

A qualitative research method involving a small, diverse group of people whose reactions to specific discussions or ideas are studied.

Interviews

A qualitative research method involving direct, face-to-face, or virtual conversation between the interviewer and interviewee(s) to gather in-depth data on a subject.

Incomplete Observer

A research role where the observer does not fully participate or reveal their observer status to the subjects being studied.