Wednesday, April 14, 2010

If a British student pays her way to attend Harvard University, her actions will (?)?

A. cause the U.S. dollar to depreciate.


B. create a supply of dollars and a demand for pounds in the foreign currency market.


C. create a supply of pounds and a demand for dollars in the foreign currency market.


D. cause the British pound to appreciate.

If a British student pays her way to attend Harvard University, her actions will (?)?
Depends on if the money she is making to pay her way, is made from employment in the US or if she currently has all the money required for her education...





but for simplicity, the answer is C (we're assuming she already has the money and needs to convert her pounds to dollars)
Reply:C. she sells pounds, and buys dollars


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