A country’s demand for foreign currency is derived from:
A. International transactions entering the debit column of its balance of payments accounts.
B. International transactions entering the surplus column of its balance of payments accounts.
C. The country’s demand for currency to finance exports and capital inflows.
D. The country’s demand for currency to finance its government’s compensating transactions.
Answer:A
A country’s demand for foreign currency is derived from:
A. International transactions entering the debit column of its balance of payments accounts. B. International transactions entering the surplus column of its balance of payments accounts. C. The country’s demand for currency to finance exports and capital inflows. D. The country’s demand for currency to finance its government’s compensating transactions.