If Americans decide to buy more South African diamonds, what is the effect in the exchange market?

Question

Quizplus · Accepted Answer

When Americans buy more South African diamonds, they need to convert their U.S. dollars into South African rand to make the purchase. This action increases the amount of U.S. dollars available in the foreign exchange market as they are selling dollars to buy rand, thus increasing the supply of U.S. dollars.

If Americans Decide to Buy More South African Diamonds, What