Who demands currency in the Foreign Exchange market?
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Who supplies currency in the Foreign Exchange market?
If the U.S. imposes an import quota on clothing, then the
demand for dollars in the market for foreign-currency exchange shifts left.
demand for dollars in the market for foreign-currency exchange shifts right.
supply of dollars in the market for foreign-currency exchange shifts right.
supply of dollars in the market for foreign-currency exchange shifts left.
The foreign currency exchange market is a dynamic environment whereby the mechanism that determines currency exchange rates is well understood, if not easy to control.
(A). What economic factors affect foreign currency exchange rates?
(B). What noneconomic factors affect foreign currency exchange rates?
(C). How can the currency exchange mechanism be influenced to produce stable foreign currency exchange rates?