The discovery of a new source of oil will lead to:
A)increased demand for another currency; appreciation of the currency.
B)increased demand for domestic currency; depreciation of the currency.
C)decreased demand for domestic currency; appreciation of the currency.
D)increased demand for domestic currency; appreciation of the currency.

Question

Quizplus · Accepted Answer

The discovery of a new source of oil can lead to increased exports, which increases demand for the domestic currency as foreign buyers need to purchase the currency to pay for the oil, leading to its appreciation.

The Discovery of a New Source of Oil Will Lead