In the foreign exchange market between the Thai baht and the U.S. dollar, if the supply of baht increases and the demand for baht decreases, the price of Thai baht in terms of U.S. dollars will definitely decrease.

Question

Quizplus · Accepted Answer

According to the law of supply and demand, an increase in supply and a decrease in demand will lead to a decrease in price. Therefore, if the supply of baht increases and the demand for baht decreases, the price of Thai baht in terms of U.S. dollars will definitely decrease.

In the Foreign Exchange Market Between the Thai Baht and the U.S