Foreign exchange

What is a foreign currency?

• To exchange one coin for another.

• Exchange of money for product/service.

"Foreign currencies are demanded by domestic households, firms, and governments"

• True

• False

What determines the price of currencies?

• The supply

• The demand

• The supply and demand

Supply is the quantity of products/service that sellers are willing and able to sell in the market at a given price.

• True

• False

______ is the quantity of goods and services that are purchased by consumers at different prices.