Exports of U.S. goods creates a _________U.S. dollars and creates a _________foreign currencies.

Question

Quizplus · Accepted Answer

When the U.S. exports goods, foreign countries need to purchase U.S. dollars in order to pay for those goods, creating a demand for U.S. dollars. At the same time, U.S. exporters receive payment in foreign currencies, creating a supply of foreign currencies. Therefore, exports of U.S. goods creates a demand for U.S. dollars and creates a supply of foreign currencies.