Which of the Following Statements Is True

Multiple Choice

Which of the following statements is true?

A) The demand for foreign currency in the United States increases as the volume of imports increases.
B) The demand for foreign currency in the United States increases as the volume of exports increases.
C) The demand for foreign currency in the United States decreases with a decrease in the inflation rate abroad.
D) The demand for foreign currency in the United States decreases as foreign interest rates rise.
E) The demand for foreign currency in the United States is unaffected by U.S.demand for foreign goods and services.