International Finance

Which of the following is an example of foreign exchange market intervention?

a) the U.S. government pays Social Security checks to pensioners living in Poland

b) IBM sells euros it received in international trade

c) the Canadian government pays interest to Saudi Arabian investors

d) the French government sells dollars in the foreign exchange market to prop up the value of the euro

The _______ for/of foreign currency in the U.S. is derived from the demand for ___________ by American consumers.

a) Demand, foreign products

b) Demand, tax loopholes

c) Supply, lower tariffs

d) Supply, local products