Figure 15-1
-Refer to Figure 15-1. The supply curve of dollars in the foreign exchange market represents
I. U.S. purchases of imported goods and services.
II. payments to foreign owners of U.S. assets.
III. demand for U.S. Treasury bonds by U.S. residents.
IV. foreigners' purchases of U.S. assets.

Question

Figure 15-1 
-Refer to Figure 15-1. The supply curve of dollars in the foreign exchange market represents 
I. U.S. purchases of imported goods and services.
II. payments to foreign owners of U.S. assets.
III. demand for U.S. Treasury bonds by U.S. residents.
IV. foreigners' purchases of U.S. assets.

Quizplus · Accepted Answer

The supply curve of dollars in the foreign exchange market is influenced by U.S. purchases of imported goods and services (I) and payments to foreign owners of U.S. assets (II), as these activities require exchanging dollars for foreign currency.

Figure 15-1 -Refer to Figure 15-1. the Supply Curve of Dollars in of Dollars