Use the following to answer questions .
Exhibit: Exchange Rates
-(Exhibit: Exchange Rates) 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

Use the following to answer questions .
Exhibit: Exchange Rates 
-(Exhibit: Exchange Rates) 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. residents purchasing foreign goods and services (I) and making payments to foreign owners of U.S. assets (II), as these actions require exchanging dollars for foreign currency.

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