The demand curve for foreign exchange is sloping downward to the right

Finance Jan 22, 2021

The demand curve for foreign exchange is sloping downward to the right. Select one:O a. True O b. False

Expert Solution

The above statement is true. As the exchange rate increases the lesser the foreign exchange demanded. As the rate of foreign exchange increases the rate of foreign goods also increases due to which the demand for the forex decreases which results in the demand curve sloping downwards.

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