In the foreign exchange market, when the U.S. interest rate ...

[DelorasTo]

In the foreign exchange market, when the U.S. interest rate rises, the supply of dollars ________ and the foreign exchange rate ________.
 
  A) increases; does not change
  B) decreases; rises
  C) increases; falls
  D) increases; rises
  E) decreases; falls

Question 2

________ in the currency drain ratio and ________ in the desired reserve ratio ________ the money multiplier.
 
  A) An increase; a decrease; increase
  B) A decrease; a decrease; increase
  C) A decrease; an increase; decrease
  D) An increase; an increase; increase
  E) An increase; a decrease; decrease

[chjcharjto14]

Answer to Question 1

B

Answer to Question 2

B