Which of the Following Would Demand Dollars in the Foreign

question 414

Multiple Choice

Which of the following would demand dollars in the foreign exchange market?
I. Americans who want to buy U.S. goods, services, and assets
II. Americans who want to buy European goods, services, and assets
III. Europeans who want to buy U.S. goods, services, and assets

• A)I only
• B)II only
• C)III only
• D)I, II, and III

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Definitions:

Population

The complete set of individuals or items that are the subject of a statistical study.

Sample

A subset of a population selected for measurement, observation, or questioning, to provide statistical information about the population.

Nondirectional Hypothesis

A hypothesis that predicts the existence of a relationship, not its direction.

Return on Equity

A measure of financial performance calculated by dividing net income by shareholders' equity, indicating how effectively management uses equity investments.