If U.S.residents want to buy more foreign bonds,then in the market for foreign-currency exchange the exchange rate
A)and the quantity of dollars traded rises.
B)rises and the quantity of dollars traded falls.
C)falls and the quantity of dollars traded rises.
D)and the quantity of dollars traded falls.

Question

Quizplus · Accepted Answer

When U.S. residents buy more foreign bonds, they need foreign currency, increasing the supply of dollars in the foreign exchange market. This causes the exchange rate to fall and the quantity of dollars traded to rise.

If USResidents Want to Buy More Foreign Bonds,then in the Market