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The ________ the Expected Profit from Holding a Foreign Currency

Question 223

Multiple Choice

The ________ the expected profit from holding a foreign currency, the greater is the ________ in the foreign exchange market.


A) larger; quantity demanded of dollars
B) smaller; quantity demanded of foreign currency
C) larger; quantity supplied of dollars
D) None of the above is correct because the expected profit has nothing to do with the supply and demand for dollars or foreign currency.

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