Cost of a foreign currency
When cost of a foreign currency increases its supply too increases. Elucidate why?
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When exchange rate rises, this will make domestic country’s goods cheaper to foreigners. The demand for our exports will increase. It entails more supply of the foreign exchange.
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Question: Changes in currency supply and demand can be traced back to changes in fundamental supply and demand in foreign and domestic i._____________________ markets and foreign and domestic ii.___________________
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