Comments on: The demand for foreign currency in the United States is based on the demand for? http://www.myylt.com/2008/06/26/the-demand-for-foreign-currency-in-the-united-states-is-based-on-the-demand-for/ Discussion of Forex Trading and Currency Trading Sat, 19 May 2012 13:08:40 +0000 http://wordpress.org/?v=2.3.3 By: ToriSoba http://www.myylt.com/2008/06/26/the-demand-for-foreign-currency-in-the-united-states-is-based-on-the-demand-for/#comment-4860 ToriSoba Tue, 30 Nov 1999 00:00:00 +0000 http://www.myylt.com/2008/06/26/the-demand-for-foreign-currency-in-the-united-states-is-based-on-the-demand-for/#comment-4860 b... foreign currency=foreign goods and services b… foreign currency=foreign goods and services

]]> By: berlin.tokyo http://www.myylt.com/2008/06/26/the-demand-for-foreign-currency-in-the-united-states-is-based-on-the-demand-for/#comment-4861 berlin.tokyo Tue, 30 Nov 1999 00:00:00 +0000 http://www.myylt.com/2008/06/26/the-demand-for-foreign-currency-in-the-united-states-is-based-on-the-demand-for/#comment-4861 I think two possible answers, depends on point of view: Answer b holds, if foreign goods and services can only be paid in foreign money, which is not always the case. The demand for foreign currency can be based on the demand for U.S dollars, because if we are looking on money market (only currencies) the budget equation can be seen as the sum of domestic currency and foreign currency: money holdings= x*domestic currency + (1-x)foreign currency Answer this question in dependency of what kind of course you are. I think two possible answers, depends on point of view:
Answer b holds, if foreign goods and services can only be paid in foreign money, which is not always the case.
The demand for foreign currency can be based on the demand for U.S dollars, because if we are looking on money market (only currencies) the budget equation can be seen as the sum of domestic currency and foreign currency:
money holdings= x*domestic currency + (1-x)foreign currency

Answer this question in dependency of what kind of course you are.

]]> By: chronic_sax http://www.myylt.com/2008/06/26/the-demand-for-foreign-currency-in-the-united-states-is-based-on-the-demand-for/#comment-4862 chronic_sax Tue, 30 Nov 1999 00:00:00 +0000 http://www.myylt.com/2008/06/26/the-demand-for-foreign-currency-in-the-united-states-is-based-on-the-demand-for/#comment-4862 The answer is B, for a simple reason. Say you are an importer and would like to buy from Japan. To do so you will need to convert dollars to Yen. The answer is B, for a simple reason. Say you are an importer and would like to buy from Japan. To do so you will need to convert dollars to Yen.

]]> By: Jurij-EU http://www.myylt.com/2008/06/26/the-demand-for-foreign-currency-in-the-united-states-is-based-on-the-demand-for/#comment-4863 Jurij-EU Tue, 30 Nov 1999 00:00:00 +0000 http://www.myylt.com/2008/06/26/the-demand-for-foreign-currency-in-the-united-states-is-based-on-the-demand-for/#comment-4863 "B" is right one. "B" is right one.

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