A German automobile maker wants to build a manufacturing facility in China. To build its manufacturing facility, the German automobile maker needs to buy land in China. To purchase that land, the German automobile maker will need to sell its euro (the currency used in Germany) in the foreign exchange market and buy renminbi (the currency used in China). Thus, the German automobile maker will be a:________
a. foreign tourist.
b. demander of the euro.
c. supplier of renminbi.
d. demander of renminbi.

Explanation: In simple words, demander of foreign exchange refers to the individual or an entity that is willing to [purchase the foreign currency in for the currency it currently holds.

The demander of foreign exchange is an foreign entity willing to make some transaction in other country for which it needs its currency. The foreign exchange transactions takes place for a number of reasons such as speculation or investment etc.

In the given case, The automobile company wants to invest in china and therefore needs their currency. Hence we can conclude that the German automobile company is the demander of renminbi.