Which of the Following Statements About the Supply of Dollars

question 38

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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Definitions:

General Journal

A primary accounting record used to record all types of transactions not assigned to any specialized journal.

Permanent

In the context of accounting, refers to accounts that are not closed at the end of the accounting period, such as asset, liability, and equity accounts.

Temporary

Pertains to accounts or actions in accounting that are not expected to continue for an extended period, often associated with a single accounting period.

Retirement Fund

A pool of funds contributed to by individuals, employers, or both for the purpose of funding an employee's retirement.