Question
The equilibrium exchange rate of the Swiss franc is $0.90. At an exchange rate $.83: a. U.S. demand for Swiss francs would exceed the supply
The equilibrium exchange rate of the Swiss franc is $0.90. At an exchange rate $.83:
| a. | U.S. demand for Swiss francs would exceed the supply of francs for sale and there would be a shortage of francs in the foreign exchange market. |
| b. | U.S. demand for Swiss francs would be less than the supply of francs for sale and there would be a shortage of francs in the foreign exchange market. |
| c. | U.S. demand for Swiss francs would exceed the supply of francs for sale and there would be a surplus of francs in the foreign exchange market. |
| d. | U.S. demand for Swiss francs would be less than the supply of francs for sale and there would be a surplus of Swiss francs in the foreign exchange market. |
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Finance A Quantitative Introduction Volume 2
Authors: Piotr Staszkiewicz, Lucia Staszkiewicz
1st Edition
0128027975, 978-0128027974
