The demand for foreign currency in the United States is based on the demand for:
A)domestic goods and services.
B)domestic exports.
C)gold.
D)foreign goods and services.
E)U.S.dollars.

Question

Quizplus · Accepted Answer

The demand for foreign currency in the US is based on the demand for foreign goods and services. When individuals and businesses in the US purchase goods and services from other countries, they have to pay in the currency of that country. This creates a demand for that currency, leading to an exchange of US dollars to foreign currency.

The Demand for Foreign Currency in the United States Is