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The_________ the Expected Profit from Holding a Foreign Currency, the Greater

Question 67

Multiple Choice

The_________ the expected profit from holding a foreign currency, the greater is the _________in the foreign exchange market.


A) larger; quantity supplied of dollars
B) smaller; quantity demanded of foreign currency
C) larger; quantity demanded of dollars
D) None of the above is correct because the expected profit has nothing to do with the supply and demand for dollars or foreign currency.

Correct Answer:

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