A factor that helps to determine the demand for the dollar in the foreign exchange market is
A) the expected future exchange rate.
B) the expected future interest rate.
C) the amount of U.S. imports.
D) the supply of U.S. dollars.

Question

Quizplus · Accepted Answer

The expected future exchange rate influences investors' and traders' decisions on whether to hold or sell dollars, affecting demand.

A Factor That Helps to Determine the Demand for the Dollar