If,at the Current Exchange Rate Between the Dollar and the South

question 25

Multiple Choice

If,at the current exchange rate between the dollar and the South African rand of 6.92 rand per dollar,the dollar is "undervalued," how do you expect demand and supply in the foreign exchange markets to respond?

• A)The demand for the dollar will rise,while the supply of the rand will fall.
• B)The demand for the dollar will fall,while the supply of the rand will rise.
• C)The supply of the dollar will fall,while the demand for the rand will fall.
• D)The supply of the dollar will fall,while the demand for the rand will rise.

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Definitions:

Remittance

The action of sending money in payment or as a gift.

Discount Period

A set timeframe in which a buyer can pay less than the full invoice amount if they pay before the period expires.

Discount Date

The date on which a bill or note is discounted, determining the time left until its maturity and the amount to be received.

Due Date

The specified date by which a payment, task, or action is required to be completed.