U.S. demand for Japanese products creates a U.S. dollars and a Japanese yen in the foreign exchange market.

Question

Mnenie [13.5K]

3 years ago

6

U.S. demand for Japanese products creates a U.S. dollars and a Japanese yen in the foreign exchange market.

A. demand for; demand for B. supply of; supply of C. supply of; demand for D. demand for; supply of

Business

1 answer:

crimeas [40] · Answer 1 · 2022-01-06T04:27:48+03:00

Answer:

The correct answer is option C.

Explanation:

US demand for Japanese products will create a supply of US dollars and demand for Japanese yen in the foreign exchange market.

This is because when the US consumers purchase Japanese products they need to pay in Japanese yen, so they will exchange US dollars for Japanese yen. Consequently, this will lead to an increase in the supply of US dollars and a demand for Japanese yen.

U.S. demand for Japanese products creates a​ ________ U.S. dollars and a​ ________ Japanese yen in the foreign exchange market.

U.S. demand for Japanese products creates a U.S. dollars and a Japanese yen in the foreign exchange market.