The principal suppliers of U.S. dollars to the foreign exchange market are:
A) foreigners wishing to purchase U.S. goods or assets.
B) the Federal Reserve.
C) U.S. households or firms wishing to purchase U.S. goods or assets.
D) U.S. households or firms wishing to purchase foreign goods or assets.

Question

Quizplus · Accepted Answer

U.S. households or firms wishing to purchase foreign goods or assets supply U.S. dollars to the foreign exchange market as they exchange dollars for foreign currency to make these purchases.

The Principal Suppliers of U