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Change of S/D in Forex Market

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Last updated 11 months ago
2 questions
1
1
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