In the foreign exchange market, the exchange rate is volatile because the
A) demand for dollars changes more frequently than the supply of dollars.
B) supply of dollars changes more frequently than the demand for dollars.
C) factors that influence the supply of dollars also influence the demand for dollars.
D) both the demand curve for dollars and the supply curve of dollars are very flat.
E) None of the above is related to the volatility of the exchange rate.
Correct Answer:
Verified
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A)
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