The foreign exchange market is
A) a market in which exchange rates are allowed to fluctuate in the open market in response to changes in supply and demand.
B) the increase in the exchange value of one nation's currency in terms of an other nation.
C) a market in which households, firms, and governments buy and sell national currencies.
D) the decrease in the exchange value of one nation's currency in terms of another nation.
Ans: C) a market in which households, firms, and governments buy and sell national currencies
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a. increase; increase b. increase; decrease c. decrease; decrease d. decrease; increase
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