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The quantity of u.s. dollars demanded in the foreign exchange market depends on the exchange rate.

What is  foreign exchange market ?

Foreign exchange market can be defined as the market that are the determinant of a country or a nation  exchange rate.

The quantity of u.s dollars demanded in the foreign exchange market depends on the following factors:

  • The exchange rate
  • World demand for U.S
  • Exports
  • Interest rate in the United States and other countries
  • The expected future exchange rate

Therefore the quantity of u.s. dollars demanded in the foreign exchange market depends on the exchange rate.

Learn more about Foreign exchange market here:https://brainly.com/question/22261485

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