False

Foreign exchange refers to the exchange of one country's currency for another country's currency. The demand for foreign exchange is influenced by various factors, including the price of foreign exchange, but it is not directly related to it.

Price of Foreign Exchange
The price of foreign exchange refers to the exchange rate between two currencies. It represents the amount of one currency that needs to be exchanged to obtain a certain amount of another currency. The exchange rate is determined by the foreign exchange market, where buyers and sellers come together to trade currencies.

Demand for Foreign Exchange
The demand for foreign exchange is determined by several factors, including:

1. Imports and Exports: When a country imports goods and services from another country, it needs to pay in the currency of that country. This creates a demand for foreign exchange. Similarly, when a country exports goods and services, it receives payment in foreign currency, which creates a supply of foreign exchange.

2. Foreign Investment: Foreign investors may invest in a country by purchasing assets denominated in the local currency. To do so, they need to exchange their currency for the local currency, creating a demand for foreign exchange.

3. Tourism: When people travel to another country for tourism purposes, they need to exchange their currency for the local currency, creating a demand for foreign exchange.

4. Speculation: Speculators, including banks and financial institutions, trade currencies in the foreign exchange market to profit from changes in exchange rates. Their activities can also influence the demand for foreign exchange.

5. Interest Rates: Differences in interest rates between countries can influence the demand for their currencies. Higher interest rates in one country may attract foreign investors, increasing the demand for its currency.

While the price of foreign exchange can influence the demand for foreign exchange to some extent, it is not the only factor. Other factors, such as imports, exports, foreign investment, tourism, and interest rates, play significant roles in determining the demand for foreign exchange.

Therefore, the statement "Demand for foreign exchange is directly related to the price of foreign exchange" is false.