A financial market panic that causes US depositors to withdraw their funds from Chinese banks, would cause a(n)________ in the demand of US dollars and a(n) _________in the demand of the Chinese Yuan.​

Respuesta :

Answer:

Increase, Decrease

Explanation:

Financial markets refer to a place wherein securities can be traded i.e bought and sold. For example bond markets, forex markets, etc.

Financial markets crash owing to high inflation, rumors and natural disasters. Such situations create a panic amongst investors and they immediately resort to withdrawal of funds.

In the given case, US Depositors had deposited funds in Chinese banks and owing to a panic withdrew the funds. Due to this, more Chinese Yuan would get converted into US Dollars.

Which means, demand for US Dollars would increase and at the same time demand for Chinese Yuan would reduce.