Which item is NOT a determinant of the demand for foreign currency?
A) a desire for foreign goods and services
B) income
C) the exchange rate
D) inflation

Question

Quizplus · Accepted Answer

The exchange rate is actually a determinant of the supply of foreign currency, not the demand for it. The other options listed (a desire for foreign goods and services, income, and inflation) are all factors that can influence the demand for foreign currency.

Which Item Is NOT a Determinant of the Demand for Foreign