Question

MONEY IN EXCESS OF ONE DOLLAR WILL BE EXHANGED FOR A TREASURY CHECK, LESS THAN A BUCK YOU PACK. FOREIGN CURRENCY AND COINS EXCEEDING FIVE DOLLARS IN VALUE WILL BE CNVERTED TO U.S. CURRENCY WHEN PRACTIABLE.

a) Exchange Procedure for U.S. Currency
b) Exchange Procedure for Foreign Currency
c) Currency Exchange Guidelines
d) Treasury Check Process for Small Amounts

Answer 1

The foreign exchange market involves the exchange of one currency for another. Demand for a currency comes from export firms, tourists, and investors, while supply comes from foreign firms and investors. Exchange rates are determined by the supply and demand for different currencies.

Step-by-step explanation:

In the foreign exchange market, people and firms exchange one currency to purchase another currency. The demand for dollars comes from U.S. export firms converting their earnings in foreign currency back into U.S. dollars, foreign tourists converting their earnings in a foreign currency back into U.S. dollars, and foreign investors seeking to make financial investments in the U.S. economy. On the supply side, foreign firms that have sold imports in the U.S. economy and U.S. investors seeking to make financial investments in foreign economies supply U.S. dollars to the foreign exchange market. The exchange rates for different currencies are determined based on the supply and demand for those currencies.