In foreign exchange markets, a U.S.resident who imports New Zealand apples is:
A)a demander and supplier of New Zealand dollars.
B)a demander and supplier of U.S.dollars.
C)a demander of New Zealand dollars and a supplier of U.S.dollars.
D)a supplier of both New Zealand dollars and U.S.dollars.
E)a supplier of New Zealand dollars and a demander of U.S.dollars.

Question

Quizplus · Accepted Answer

The U.S. resident needs to buy New Zealand dollars to pay for the imported apples, making them a demander of New Zealand dollars. At the same time, they will supply U.S. dollars to buy those New Zealand dollars, making them a supplier of U.S. dollars. Therefore, the correct choice is C, a demander of New Zealand dollars and a supplier of U.S. dollars.

In Foreign Exchange Markets, a U