Which of the following generates an increase in a nation's supply of foreign currencies?

Question

Quizplus · Accepted Answer

When an American firm exports goods to Canada, they receive payment in Canadian dollars. This increases the supply of foreign currency (Canadian dollars) in the US.

Answer: C 
 When an individual in the US buys bonds from France, they purchase the bonds with US dollars and receive interest payments in French euros. This increases the supply of foreign currency (French euros) in the US.

A and D are incorrect as they involve spending US dollars to purchase foreign goods or services, which would decrease the supply of foreign currency in the US.

Which of the Following Generates an Increase in a Nation's