Which of the following gives rise to transaction demand for a currency?   A Chinese investor buys U.S. T-bonds, expecting dollars to appreciate.   The Bank of Japan sells yen in the foreign currency markets.   A Japanese car maker pays a U.S. engine manufacturer in dollars.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
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Chapter6: Managing In The Global Economy
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Which of the following gives rise to transaction demand for a currency?
 
A Chinese investor buys U.S. T-bonds, expecting dollars to appreciate.
 
The Bank of Japan sells yen in the foreign currency markets.
 
A Japanese car maker pays a U.S. engine manufacturer in dollars.
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