When you arrive at the airport in Paris and go to the bank window to exchange dollars into euros, you are
A) selling euros to the French.
B) avoiding the use of foreign exchange markets.
C) contributing to U.S. exports.
D) None of the above answers is correct.

Question

Quizplus · Accepted Answer

When you exchange dollars into euros at a bank in Paris, you are essentially buying euros with your dollars. This transaction does not directly involve selling euros to the French, contributing to U.S. exports, or avoiding the use of foreign exchange markets. Instead, it's a part of the foreign exchange market operations where currencies are exchanged.

When You Arrive at the Airport in Paris and Go