Multiple Choice
In a floating exchange rate regime,the exchange rate is the equilibrium price of the currency.Changes in demand for a currency will cause changes in the equilibrium exchange rate.Which of these statements in relation to the AUD demand curve in the FX market is incorrect?
A) The purchase of AUD goods, services or assets generates a demand for AUD.
B) A depreciation of the AUD equates to a fall in the price of Australian goods, services and assets.
C) The demand curve is downward-sloping; as the price of the AUD increases the demand for the AUD also increases.
D) A fall in the cost of Australian goods, services or assets will result in increased demand for the AUD.
Correct Answer:
Verified
Correct Answer:
Verified
Q64: If the price of a local currency
Q65: If currency traders are anticipating a currency's
Q66: Consider a textbook situation in which Australia
Q67: If German demand for Australian exports increases
Q68: Consider the following five statements:<br>i.There is conclusive
Q70: All else being equal,a significant appreciation of
Q71: Consider a textbook situation in which Australia
Q72: On a foreign exchange diagram of the
Q73: With the USD/AUD currency pair,an increase in
Q74: If the currency AUD/USD moves from 0.9527-32