U.S. households wishing to purchase shares of stock in a European company are ________ the foreign exchange market.
A)suppliers of U.S. dollars in
B)suppliers of Euros in
C)supplied Euros by the Fed for use in
D)demanders of U.S. dollars in

Question

Quizplus · Accepted Answer

When U.S. households wish to purchase shares of stock in a foreign company, the households need to obtain foreign currency first. To do this, the household supplies dollars in exchange for foreign currency.

US Households Wishing to Purchase Shares of Stock in a European