Which of the Following Will Generate a Demand for Country

question 111

Multiple Choice

Which of the following will generate a demand for country X's currency in the foreign exchange market?

• A) Travel by citizens of country X in other countries.
• B) The desire of foreigners to buy stocks and bonds of firms in country X.
• C) The imports of country X.
• D) Charitable contributions by country X's citizens to citizens of developing nations.

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Definitions:

Situational Factors

External elements or circumstances that can influence an individual's behavior or the outcome of a decision or event.

Contrast Effect

An effect that takes place when people rank something higher or lower than they should as a result of exposure to recent events or situations.

Perceptual Distortion

An error in perception resulting from individual biases or misinformation, affecting the interpretation of reality.

Attribution Theory

A theory that holds that people look for two causes to explain the behavior of others: internal attributions, which are personal characteristics of others, and external attributions, which are situational factors.