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Which of the following are premises of foreign currency exchange? 1. To demand a country's goods, services, and investments is to demand its currency II.

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Which of the following are premises of foreign currency exchange? 1. To demand a country's goods, services, and investments is to demand its currency II. Demanding a foreign currency requires supplying a domestic currency III. Demanding a foreign currency raises the value of the domestic currency O a. I only O b. I and I only OC I and III only O d. l. ll, and ill Which of the following will lead an American to exchange U.S. dollars for euros? 1. Importing a case of French wine II. Purchasing a cottage in the Britsh countryside III. Investing in the stock of a French firm Select one: O A. Tonly OB. I and II only OCT and Ill only OD. III and III An inflow of U.S. dollars to the U.S. Balance of Payments account will occur when O a. the U.S. buys foreign currency in international markets. Ob the US donates foreign aid to other countries. oc the U.S. exports merchandise to foreign countries O d. all of the above

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