The Graph Below Shows the Supply and Demand for Swiss

question 22

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.

---

Definitions:

Lease Receipts

Payments received by a lessor from a lessee for the use of an asset during the lease term.

Undiscounted Lease Payments

Lease payments made over the lease term without reducing them for interest or present value factors.

Lessees Disclosure

Information that lessees are required to make known, typically relating to the rights and obligations arising from leasing arrangements per accounting standards.