In the Foreign Exchange Market, Which of the Following Shifts

question 42

Multiple Choice

In the foreign exchange market, which of the following shifts the demand curve for dollars rightward?

• A) the expected future exchange rate rises
• B) the expected future exchange rate falls
• C) the current exchange rate falls
• D) the current exchange rate rises
• E) None of the above answers is correct

---

Definitions:

Trading Securities

Financial assets such as stocks or bonds, held by a firm for the purpose of reselling them in the short term to profit from price movements.

Held Primarily

Indicates that the main reason for holding an asset or investment is for a specific purpose, not necessarily for immediate sale.

Amortized Book Value

The adjusted book value of an asset after accounting for amortization expenses.

Bond Investment

The act of investing in bonds, which are debt securities issued by entities to raise capital, offering fixed income over time.