This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Name three factors in the foreign exchange market that affect either the quantity of dollars ... (Read 84 times)

cartlidgeashley

  • Hero Member
  • *****
  • Posts: 572
on: Jun 29, 2018
Name three factors in the foreign exchange market that affect either the quantity of dollars demanded or the demand for dollars. Discuss whether the factor increases or decreases the number of dollars people want to hold.
 
  What will be an ideal response?

Question 2

The demand for loanable funds curve shows the
 
  A) positive relationship between the interest rate and the quantity of loanable funds demanded.
  B) positive relationship between the demand for loanable funds curve and the supply of loanable funds curve.
  C) U-shaped relationship between the interest rate and the quantity of loanable funds demanded.
  D) negative relationship between the interest rate and the quantity of loanable funds demanded.
  E) negative relationship between the demand for loanable funds curve and the supply of loanable funds curve.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Koolkid240

  • Sr. Member
  • ****
  • Posts: 357
Reply #1 on: Jun 29, 2018
Answer to Question 1

Three factors are the exchange rate, the U.S. interest rate differential, and the expected future exchange rate. If the exchange rate rises, the quantity of dollars demanded decreases. If the U.S. interest rate differential is larger (either because the U.S. interest rate rose or because foreign interest rates fell) then the demand for dollars increases. And, if the expected future value of the exchange rate is higher, then the current demand for dollars increases.

Answer to Question 2

D


cartlidgeashley

  • Member
  • Posts: 572
Reply 2 on: Jun 29, 2018
Thanks for the timely response, appreciate it

Dominic

  • Member
  • Posts: 328
Reply 3 on: Yesterday
Gracias!

« previous next »
 

Did you know?

Aspirin is the most widely used drug in the world. It has even been recognized as such by the Guinness Book of World Records.

Did you know?

The Centers for Disease Control and Prevention (CDC) was originally known as the Communicable Disease Center, which was formed to fight malaria. It was originally headquartered in Atlanta, Georgia, since the Southern states faced the worst threat from malaria.

Did you know?

The use of salicylates dates back 2,500 years to Hippocrates's recommendation of willow bark (from which a salicylate is derived) as an aid to the pains of childbirth. However, overdosage of salicylates can harm body fluids, electrolytes, the CNS, the GI tract, the ears, the lungs, the blood, the liver, and the kidneys and cause coma or death.

Did you know?

Computer programs are available that crosscheck a new drug's possible trade name with all other trade names currently available. These programs detect dangerous similarities between names and alert the manufacturer of the drug.

Did you know?

Blood in the urine can be a sign of a kidney stone, glomerulonephritis, or other kidney problems.

Primary factors affecting blood pressure Primary factors affecting blood pressure
A child in an orphanage in Juba, Sudan. The treatment of this child is likely to affect his ability ... A child in an orphanage in Juba, Sudan. The treatment of this child is likely to affect his ability ...
Conduction and gas exchange structures and functions. Conduction and gas exchange structures and functions.
DOT placarding requirements: Table 1 materials must be placarded in any quantity, and Table 2 ... DOT placarding requirements: Table 1 materials must be placarded in any quantity, and Table 2 ...
Factors That Contribute to Eating Disorders Factors That Contribute to Eating Disorders
Other Endocrine Tissues and Organs, Eicosanoids, and Growth Factors Other Endocrine Tissues and Organs, Eicosanoids, and Growth Factors
Video: Mechanisms of capillary exchange

For a complete list of videos, visit our video library