Foreign demand for U.S.dollars also represents a supply of dollars.
Foreign demand for U.S.dollars does not represent a supply of U.S.dollars,but U.S.demand for foreign goods would create a supply of U.S.dollars.

Question

Quizplus · Accepted Answer

Foreign demand for U.S. dollars represents a demand for U.S. dollars, not a supply. U.S. demand for foreign goods creates a supply of U.S. dollars as those dollars are exchanged for the foreign currency needed to purchase the goods.

Foreign Demand for U