What are the factors affecting the demand for foreign currency?
What will be an ideal response?
Three factors affect the demand for foreign currency. They are expected return, risk, and liquidity.
Economics
You might also like to view...
The LM curve shows that, with a fixed supply of money, as GDP rises, the demand for money will ____ and the rate of interest will ____.
A) rise; rise B) fall; fall C) rise; fall D) fall; rise
Economics
The cross elasticity of demand for strawberry jelly and grape jelly is likely to be
A) positive because they are substitutes. B) positive because they are complements. C) negative because they are substitutes. D) negative because they are complements. E) negative because they are inferior goods.
Economics