Asked by Colton Hiler on Jun 07, 2024
Verified
U.S.exports,foreign travel in the U.S. ,and foreign capital inflow into the U.S.give rise to
A) a supply of foreign currencies.
B) a demand for foreign currencies.
C) a lower value of the U.S.dollar.
D) decreased foreign exchange reserves in the U.S.
Foreign Capital Inflow
The entry of investment from external sources into a country, typically in the form of foreign direct investment (FDI), portfolio investment, or loans, contributing to economic development.
Foreign Exchange Reserves
Assets held on reserve by a central bank in foreign currencies, used to back liabilities and influence monetary policy.
- Clarify the impact that variations in exchange rates have on the dynamics of international trade and investments.
Verified Answer
CY
chong yik liangJun 12, 2024
Final Answer :
A
Explanation :
These activities increase the supply of foreign currencies in the U.S. as they involve receiving money from abroad, either through exports, foreign investments, or spending by tourists.
Learning Objectives
- Clarify the impact that variations in exchange rates have on the dynamics of international trade and investments.