Asked by Shauntae Davis on Jul 09, 2024
Verified
United States exports, international tourism in the United States, and foreign capital inflow into the United States all give rise to
A) depreciation of the U.S. dollar.
B) a supply of foreign currencies to the United States.
C) a demand for foreign currencies in the United States.
D) decreased foreign-exchange reserves in the United States.
International Tourism
Traveling to foreign countries for leisure, business or other purposes, which contributes to the economic and cultural exchange between nations.
Foreign Capital Inflow
The entry of capital from one country into another, where it is used to purchase assets or invest in business activities, often enhancing economic development.
Depreciation
The process by which capital assets lose value over time due to use, wear and tear, or obsolescence.
- Relate changes in supply and demand for currencies to movements in their market value.
Verified Answer
RK
Reese KlingelJul 15, 2024
Final Answer :
B
Explanation :
Exports, international tourism in the United States, and foreign capital inflow all result in foreigners needing to exchange their currencies into U.S. dollars, thereby supplying their own currencies to the U.S. market.
Learning Objectives
- Relate changes in supply and demand for currencies to movements in their market value.