Demand for a foreign currency is generated by:
A)government policies.
B)the sources from which the currency can be obtained.
C)requirements of MNCs and foreign travel.
D)events within the country whose currency is being considered.

Question

Quizplus · Accepted Answer

Demand for a foreign currency is often driven by multinational corporations (MNCs) and individuals who require it for foreign travel or investment purposes. These entities need to exchange their home currency for the foreign currency to conduct business, invest, or spend abroad, thus generating demand.

Demand for a Foreign Currency Is Generated By