Which of the following creates a demand for U.S. dollars?
A) a U.S. tourist catching a show in London
B) Toyota, a Japanese firm, purchasing land in Texas
C) a U.S. restaurant purchasing Mexican tomatoes
D) a Japanese tourist catching a show in London

Question

Quizplus · Accepted Answer

When a foreign company or individual purchases assets in the United States, such as land or property, they often need to convert their currency into U.S. dollars, creating a demand for U.S. dollars. Therefore, Toyota's purchase of land in Texas creates a demand for U.S. dollars. The other options do not involve a foreign entity needing to convert their currency into U.S. dollars.

Which of the Following Creates a Demand for U