Which of the following would not shift the demand curve for sterling on foreign exchange markets?

Question

Quizplus · Accepted Answer

A fall in the supply curve that lowers the volume of market trade affects the supply side of the currency, not the demand side. Rising overseas inflation rates, a rise in domestic incomes, and a fall in domestic interest rates all directly affect the demand for sterling by changing the attractiveness of holding or acquiring sterling relative to other currencies.

Which of the Following Would Not Shift the Demand Curve