Suppose That the United States Fixes the Dollar-Pound Exchange Rate

question 141

Multiple Choice

Suppose that the United States fixes the dollar-pound exchange rate. In the process of maintaining the fixed exchange rate, if the U.S. central bank starts to realize reduced reserves of pounds, this suggests that

• A)the quantity supplied of pounds has exceeded the quantity demanded of pounds.
• B)the quantity demanded of pounds has exceeded the quantity supplied of pounds.
• C)the exchange rate will rise.
• D)the U.S. supply of dollars has increased.

---

Definitions:

Sales Call

A communication, often in the form of a telephone call or face-to-face visit, initiated by a salesperson to a potential customer with the aim of making a sale.

Postpone

To delay or put off an event, action, or decision to a later time.

Sales Presentation

A formal communication or demonstration aimed at promoting a product or service to potential customers.

Relatively Inexpensive

Describes goods or services offered at a low price in comparison to their perceived value or the prices of competing products.