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Change of S/D in Forex Market
By Michael Burbine
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Last updated 11 months ago
2 questions
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Question 1
1.
Determine what will happen to the demand of US $.
Demand for the US $ will
increase / decrease / stay the same
when price levels of goods and services in the US are rising.
Demand for the US $ will
increase / decrease / stay the same
when more tourists come to the US.
Demand for the US $ will
increase / decrease / stay the same
when real interest rates in the US are rising.
Demand for the US $ will
increase / decrease / stay the same
when disposable income in Mexico rises.
Demand for the US $ will increase / decrease / stay the same when currency traders believe that the US $ will appreciate in value over the next year.
Demand for the US $ will
increase / decrease / stay the same
when the EU and Japan experience yet another recession.
Increase
Stay the Same
Decrease
Question 2
2.
Determine what will happen to the supply of US $.
Supply of the US $ will
increase / decrease / stay the same
when the US experiences an inflation rate of 6%.
Supply of the US $ will
increase / decrease / stay the same
when more Americans travel abroad.
Supply of the US $ will
increase / decrease / stay the same
when real interest rates in Australia are rising.
Supply of the US $ will
increase / decrease / stay the same
when the British Pound depreciates in its value.
Supply of the US $ will
increase / decrease / stay the same
when US imports are decreasing.
Supply of the US $ will
increase / decrease / stay the same
when price levels in the US are rising.
Increase
Stay the Same
Decrease