The supply of foreign exchange can shift in response to changes in the exchange rate.

Name: The supply of foreign exchange can shift in response to changes in the exchange rate.
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Question

Quizplus · Accepted Answer

The supply of foreign exchange is primarily influenced by factors such as exports, foreign investment in a country, and the country's currency reserves, rather than changes in the exchange rate itself. Changes in the exchange rate can affect the demand for a currency, but the supply shifts due to other economic factors.

The Supply of Foreign Exchange Can Shift in Response to Changes