

MCQOPTIONS
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1. |
When the price of foreign currency (i.e the exchange rate) is below the equilibrium level ? |
A. | an excess demand for that currency exists in the foreign exchange market |
B. | an excess supply of the currency exists in the foreign exchange market |
C. | the demand for foreign exchange shifts outward to the right |
D. | the demand for foreign exchange shifts backward to the left |
Answer» B. an excess supply of the currency exists in the foreign exchange market | |