Which of the following statements about the supply of dollars in the foreign exchange market is TRUE?

Question

Quizplus · Accepted Answer

The supply of dollars in the foreign exchange market represents the willingness of households and firms that own dollars to exchange them for foreign currency. It is not equal to the money supply (A), nor does it necessarily represent the demand for U.S. goods and financial assets (B) or the supply of U.S. goods and financial assets (C).

Which of the Following Statements About the Supply of Dollars