Concept:Excess demand for foreign exchange makes the domestic currency weaker in the foreign exchange market.Explanation:When the demand for foreign exchange is greater than its supply, buyers compete for the limited foreign currency available.This pressure pushes the exchange rate upward, meaning more units of the domestic currency are needed to buy one unit of foreign currency.As a result, the domestic currency loses value, or depreciates, relative to the foreign currency.Answer:B. depreciates