If,under a System of Fixed Exchange Rates,the Equilibrium Value of the Dollar

question 47

Multiple Choice

If,under a system of fixed exchange rates,the equilibrium value of the dollar is below the official exchange rate for the dollar,there will be a(n)

• A) shortage of dollars.
• B) excess demand for dollars.
• C) black market for dollars.
• D) rise in the price of a dollar.
• E) dollar glut.

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Definitions:

London Forces

Weak intermolecular forces, also known as dispersion forces, arising from instantaneous dipoles in molecules, influential in nonpolar compounds.

Sodium Chloride

Sodium chloride is a chemical compound also known as table salt, formed from the ionic bonding of sodium and chlorine atoms.

Organic Solvent

A liquid substance capable of dissolving other substances; usually organic compounds that are not water.

Hexane

A straight-chain alkane with six carbon atoms, typically used as a non-polar solvent in organic chemistry.