Which of the following will generate a demand for country X's currency in the foreign exchange market?
A)travel by citizens of country X in other countries
B)the desire of foreigners to buy stocks and bonds of firms in country X
C)the imports of country X
D)charitable contributions by country X's citizens to citizens of developing nations

Question

Quizplus · Accepted Answer

The desire of foreigners to buy stocks and bonds of firms in country X will generate a demand for country X's currency in the foreign exchange market, as they need to exchange their own currency for country X's currency to make these investments.

Which of the Following Will Generate a Demand for Country