Which of the following people is most likely to demand U.S.dollars in the foreign exchange market?
A)A United States resident who is traveling to the Greek Islands
B)An American investor who intends to buy Japanese government bonds
C)A resident of Australia who is traveling to Belgium
D)A British importer of U.S.beef
E)A U.S.company that is importing avocados from Mexico

Question

Quizplus · Accepted Answer

A British importer of U.S. beef will need to exchange British pounds for U.S. dollars in order to pay for their imports, making them the most likely to demand U.S. dollars in the foreign exchange market. The other choices either involve U.S. citizens/ companies traveling abroad or investing in foreign assets, which do not necessarily require the exchange of U.S. dollars in the foreign exchange market.

Which of the Following People Is Most Likely to Demand