# If the EU imposes a quota on the importing of clothing produced in China, so reducing UK imports of clothing Which of the following is true regarding the market for foreign currency exchange ? with Answer - Economics Mcqs | TestPrep

> Solved MCQ: If the EU imposes a quota on the importing of clothing produced in China, so reducing UK imports of clothing Which of the following is true regarding the market for foreign currency exchange ? Correct Answer: D. The demand for Pounds increases and the pound appreciates. Verified answer explanation for FPSC, PPSC, MDCAT, NTS, and CSS competitive exam preparation.

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# If the EU imposes a quota on the importing of clothing produced in China, so reducing UK imports of clothing Which of the following is true regarding the market for foreign currency exchange ?

Direct Answer & Quick Reference

The correct option is **D. The demand for Pounds increases and the pound appreciates**.

A. The demand for pounds decreases and the pound depreciates

B. The Supply of pounds increases, and the pound depreciates

C. The Supply of pounds decreases, and the pound appreciates

D. The demand for Pounds increases and the pound appreciates **(Correct Answer)**

✨ Explain with AI

Verified Key: D. The demand for Pounds increases and the pound appreciates
Solved by 4,639+ students

Verified against official examination board answer keys and standard curriculum textbooks.

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