The Equilibrium Exchange Rate of the Swiss Franc Is $0

question 19

Multiple Choice

The equilibrium exchange rate of the Swiss franc is $0.90. At an exchange rate $.87, U.S. demand for Swiss francs would ______ the supply of francs for sale and there would be a ______ of francs in the foreign exchange market.​

• A) ​exceed; shortage
• B) ​be less than; shortage
• C) ​exceed; surplus
• D) ​be less than; surplus

---

Definitions:

Drug Use

The consumption of substances for their psychoactive effects, which can range from prescribed medications to illegal narcotics.

Reckless Behavior

Actions taken without consideration for the potential harm or consequences to oneself or others, often impulsive and risky.

Adolescents

Young people in the transitional stage of development from childhood to adulthood, typically ranging from age 13 to 19.

Risky Behavior

Actions or activities that involve a significant chance of causing physical or psychological harm.