MCQOPTIONS
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MCQOPTIONS
| 1. |
The equilibrium exchange rate of pounds is $1.70. At an exchange rate of $1.72 perpound: |
| A. | U.S. demand for pounds would exceed the supply of pounds for sale and there would be a shortage of pounds in the foreign exchange market. |
| B. | U.S. demand for pounds would be less than the supply of pounds for sale and there would be a shortage of pounds in the foreign exchange market. |
| C. | U.S. demand for pounds would exceed the supply of pounds for sale and there would be a surplus of pounds in the foreign exchange market. |
| D. | U.S. demand for pounds would be less than the supply of pounds for sale and there would be a surplus of pounds in the foreign exchange market. |
| Answer» E. | |