Question 1
Which of the following decreases the price of the dollar relative to the British pound?
◦ a decrease in the supply of dollars
◦ a decrease in the demand for pounds
◦ an increase in the demand for dollars
◦ an increase in the supply of dollars
Question 2
An increase in the supply of dollars and an increase in the demand for Japanese yen
◦ increases the dollar price of yen.
◦ decreases the dollar price of yen.
◦ increases the yen price of dollars.
◦ does not change the exchange rate between dollars and yen.