Currency Traders Expect the Value of the Dollar to Fall

question 120

Multiple Choice

Currency traders expect the value of the dollar to fall.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:

Mania

A mental state characterized by extremely high energy levels, euphoria, hyperactivity, and a decreased need for sleep, often seen in bipolar disorder.

Euphoria

A feeling or state of intense excitement and happiness.

Impulsive Behavior

Actions performed suddenly without apparent thought, often as a response to immediate stimuli.

DSM

Short for Diagnostic and Statistical Manual of Mental Disorders, a handbook used by healthcare professionals as the authoritative guide to the diagnosis of mental disorders.