The Demand for U

Multiple Choice

The demand for U.S. dollars in the foreign exchange market comes from _____, while the supply of dollars comes from _____.

A) foreigners who want to make transactions in dollars; Americans who sell dollars to purchase foreign currencies
B) U.S. banks that sell securities to foreigners; foreign banks that sell securities to Americans
C) U.S. companies that want to be paid in dollars; foreign companies that want to be paid in their own currency
D) speculators who believe the dollar will depreciate; speculators who believe the dollar will appreciate