The supply of foreign currency may be:
A) Upward-sloping
B) Backward-sloping
C) Vertical
D) None of the above

Name: The supply of foreign currency may be: A) Upward-sloping B) Backward-sloping C) Vertical D) None of the above
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Question

Quizplus · Accepted Answer

The supply of foreign currency does not depend on its price, but on the willingness of foreign holders of the currency to exchange it for the domestic currency. Therefore, it is not upward-sloping, backward-sloping, or vertical.

The Supply of Foreign Currency May Be