Exports of U.S. goods create a ________ U.S. dollars and create a ________ foreign currencies.
A) demand for; demand for.
B) supply of; supply of
C) demand for; supply of
D) supply of; demand for

Question

Quizplus · Accepted Answer

Exports of U.S. goods create a demand for U.S. dollars because foreign buyers need to exchange their currency for dollars to pay for the goods. Simultaneously, it creates a supply of foreign currencies as U.S. exporters receive foreign currencies in exchange for their goods.