Other things being equal, an increase in the demand for a currency in the foreign exchange market will cause its exchange rate to fall.

Name: Other things being equal, an increase in the demand for a currency in the foreign exchange market will cause its exchange rate to fall.
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Question

Quizplus · Accepted Answer

An increase in the demand for a currency in the foreign exchange market typically causes its exchange rate to rise, not fall, because more people are wanting to buy it, increasing its value relative to other currencies.

Other Things Being Equal, an Increase in the Demand for a Currency