In the foreign exchange market, the demand for dollars increases ...

[nmorano1]

In the foreign exchange market, the demand for dollars increases and the demand curve for dollars shifts rightward if the
 
  A) U.S. interest rate differential increases.
  B) foreign interest rate rises.
  C) exchange rate falls.
  D) expected future exchange rate falls.
  E) U.S. interest rate falls.

Question 2

What is a balance of payments system, and what three types of international transactions are typically found in the balance of payments?
 
  What will be an ideal response?

[mcomstock09]

Answer to Question 1

A

Answer to Question 2

A balance of payments is a system of accounts that measures transactions of goods, services, income, and financial assets between the households, businesses and government of one country and the residents of the rest of the world during a specific time period. The three types of international transactions typically found in a balance of payments are the current account, the financial account, and the capital account.

[nmorano1]

Excellent

[patma1981]

Gracias!