The Graph Below Shows the Supply and Demand for Swiss

question 6

Multiple Choice

The graph below shows the supply and demand for Swiss francs in the absence of any intervention by the central monetary authorities.$0.25 is the value of the franc fixed by the central bank.Which of the following is correct?

• A)The Swiss franc is overvalued.
• B)Switzerland's balance of payments is likely to be in large surplus.
• C)At the $0.25 value there is an excess demand for Swiss francs.
• D)At the $0.20 value there is an excess supply of Swiss francs.

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Definitions:

27 Ω

A specific resistance value, indicating an object or material has a resistance of twenty-seven ohms.

56 Ω

A specific value of electrical resistance indicating that an object opposes the flow of electric current with a force of 56 ohms.

Current Flow

The movement of electric charge carriers, like electrons, through a conductor, measured in amperes (A).

Current Flow

The directed movement of electric charge through a conductor, often described in terms of direction from positive to negative points.