Demand And Supply of Currencies

Question 1

Why Demand Currency

Answer 1

1. To purchase Australian goods and services

2. To purchase Australian Assets

Question 2

Why Supply Currency

Answer 2

1. To purchase foreign GnS

2. To purchase foreign assets

Question 3

Changes in Supply of Currency

Answer 3

1. An increase in preference for foreign goods
2. An increase in Australian real GDP
3. An increase in Foreign goods IR