The demand for dollars is determined by
A)foreign demand for U.S. goods, services, and securities.
B)domestic demand for foreign goods, services, and securities.
C)domestic supply of U.S. goods, services, and securities.
D)foreign supply of foreign goods, services, and securities.

Question

Quizplus · Accepted Answer

The demand for dollars is determined by foreign demand for U.S. goods, services, and securities because international trade involves exchanging one country's currency for another. So, the demand for U.S. dollars arises from foreigners who need to use it to purchase American products, invest in American businesses, or buy American securities.

The Demand for Dollars Is Determined by