Question

Indicate whether each of the following creates a demand for, or supply of Euros in foreign exchange markets: (a) An Australian importer purchases a shipload of French wine. (b) A German motor vehicle manufacturer decides to build an assembly plant in Adelaide. (c) An Australian university student decides to spend a year studying at an Irish university. (d) A French manufacturer exports machinery to Morocco on an Australian ship. (e) An Australian government bond held by a Dutch citizen matures.

Answer 1

a), c) - demand

b), d), e) - supply