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When Entities Purchase Assets Denominated in Foreign Currencies,those Entities Are

Question 41

Multiple Choice

When entities purchase assets denominated in foreign currencies,those entities are:


A) decreasing the supply of the foreign currency because they are using the foreign currency to purchase the assets.
B) not affecting the supply of the foreign currency involved because there is a finite supply of any currency.
C) creating a supply of the foreign currency because they are paying for those purchases in the foreign currency.
D) not affecting the supply of foreign currency because the supply of a currency can only be changed by the central bank that controls the currency.

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