Question

Why does the demand for foreign currency fall when it's price rises? Explain.​

Answer 1

Answer:

When price of foreign exchange rises, import becomes costlier and demand tor imports fall. As a result, demand for foreign currency falls. On the contrary when price of foreign exchange rises, domestic goods become cheaper for foreign buyers.

Explanation:

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Answer 2

Answer:

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Explanation:

The demand for foreign currency fall and supply rises when its price rises because domestic goods become cheaper. It induces the foreign currency to increase their imports from the domestic country. ... It will raise the supply of US dollars