Question 26 0.56 pts Which of the following generates a demand for U.S. dollars

Question

Question 26 0.56 pts Which of the following generates a demand for U.S. dollars in the currency market? O Japanese tourists shop in Barney's of New York O A Japanese businesswoman sells her U.S. government bonds. O A restaurant in Kansas imports Kobe beef from Japan. O An American citizen buys Japanese Yen for her trip to Japan. Question 27 0.56 pts Payments made by the government to households that do not require anything in exchange are called: O consumption expenditures. O transfer payments. O government purchases. O investment expenditures.

Explanation / Answer

26. The Demand for US $ will increase in the currency market when

A Japanese tourist will purchases good in Barney's shop in New York.

1st Option is correct.

When a Japanese businessman sells US bond he will recieve Dollar in exchange of Bond and she will convert it to Yen buy selling US $. That is this will increase the supply.

The restaurant is importing from Japan hence they will be buying Yen by paying US $ hence supply will increase.

When an American citizen Japanese yen he will supply Dollar in exchange of Yen.

27. Payments made by the government to households that require anything in exchange are called

Transfer Payments.

Transfer payments are also known as Subsidy.

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.