If Currency Traders Expect the Value of the Dollar to Rise

question 9

Multiple Choice

If currency traders expect the value of the dollar to rise, 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:

Communicate Broad

The act of disseminating information widely across various channels to reach a large audience.

Guidelines

A set of recommended practices, rules, or instructions designed to guide decision-making or actions in specific contexts.

Specific Circumstances

Particular situations or conditions that are distinct and separate from others, often influencing outcomes or decisions.

Great Chain

Often referred to as the Great Chain of Being, a philosophical concept that proposes a strict hierarchical structure of all matter and life.