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What happens in the foreign exchange market when a surplus of dollars​ exists? When there is a surplus of dollars in the foreign exchange​ market, _______.
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12 votes
What happens in the foreign exchange market when a surplus of dollars​ exists? When there is a surplus of dollars in the foreign exchange​ market, _______.

User Nicolas Dominguez
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26 votes

Answer:

prices will decrease

Step-by-step explanation:

  • The forex market is balanced when there exists when the quantity supply of any currency is equal to the quantity demanded. If the market has a surplus or shortages the rates will adjust accordingly.
User Fabrizio Accatino
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