The supply and demand for a currency is driven by

Question

Quizplus · Accepted Answer

The supply and demand for a currency can be influenced by a variety of factors, including firms trading goods, investors trading securities, and the actions of central banks. Firms trading goods can impact the demand for a currency if they need to purchase it in order to pay for imported goods or if they receive payment in that currency for their exported goods. Similarly, investors trading securities can affect the demand for a currency if they purchase assets denominated in that particular currency. Finally, central banks can influence the supply and demand for a currency through their monetary policy decisions, such as adjusting interest rates or printing more money. Therefore, all of the above factors can contribute to the supply and demand for a currency.

The Supply and Demand for a Currency Is Driven by