The principal demanders of U.S. dollars in the foreign exchange market are:
A)foreigners wishing to purchase U.S. goods or assets.
B)the Federal Reserve.
C)U.S. households or firms wishing to purchase U.S. goods or assets.
D)U.S. households or firms wishing to purchase foreign goods or assets.

Question

Quizplus · Accepted Answer

U.S. households and firms buy billions of dollars' worth of foreign goods and services every year. They pay for these purchases by supplying U.S. dollars to the foreign exchange market.

The Principal Demanders of U