Which of the following is a source of supply for the Australian dollar?
A)A German firm that wants to purchase agricultural products from Australia.
B)An Indian financier who wants to buy an Australian bond.
C)A currency trader who thinks the value of the dollar will be greater in the future relative to the value today.
D)An Australian bank that wants to buy a Japanese bond.

Question

Quizplus · Accepted Answer

When an Australian bank wants to buy a Japanese bond, it needs to exchange Australian dollars for Japanese yen, thus supplying Australian dollars to the foreign exchange market.

Which of the Following Is a Source of Supply for the Australian