Currency Traders Expect the Value of the Dollar to Rise

question 123

Multiple Choice

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:

Marketing Concept

The philosophy that firms should analyze the needs of their customers and then make decisions to satisfy those needs, better than the competition.

Market Orientation

A business philosophy where the focus is on identifying and meeting the needs and desires of customers through the product mix.

Dual-process model

A theory explaining human thought and behavior as the outcome of two distinct systems: one automatic and unconscious, and the other deliberate and conscious.