The Asset market approach argues that exchange rates are determined by the supply and demand for a wide variety of financial assets.
Asset market approach is a method of long-term foreign exchange rate determination that assumes that whether foreigners are willing to hold claims in monetary form depends on an extensive set of investment considerations of drivers. Asset market approach is an approach to determine asset prices using stocks of assets rather than flows.
Supply and demand, in economics, relationship between the quantity of a commodity that producers wish to sell at various prices and the quantity that consumers wish to buy.
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