In the monetary approach to exchange rate determination, relative supplies of domestic and foreign bonds have a crucial role in determining exchange rates.

Name: In the monetary approach to exchange rate determination, relative supplies of domestic and foreign bonds have a crucial role in determining exchange rates.
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Quizplus · Accepted Answer

The monetary approach to exchange rate determination focuses on the supply and demand for money, not on the relative supplies of domestic and foreign bonds.

In the Monetary Approach to Exchange Rate Determination, Relative Supplies