The Following Question Are Based on the Following Diagram, Showing

question 66

Multiple Choice

The following question are based on the following diagram, showing the market for Swiss francs. Assume Switzerland and the United States are engaged in a system of fixed exchange rates. The official rate is $0.40 per franc.

-If,despite U.S.government intervention in the currency markets,the supply and demand curves remain as shown,the U.S government might try to

• A) curtail the tourism of Swiss citizens in the United States.
• B) discourage imports of Swiss goods.
• C) appreciate the dollar relative to the Swiss franc by changing the official exchange rate.
• D) increase its imports from Switzerland and reduce them from other countries.
• E) buy gold.

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Definitions:

Chamber of Commerce

A local association to promote and protect the interests of the business community in a particular place.

Financial Services

Industries that manage money, including banks, credit unions, credit-card companies, insurance companies, accountancy companies, consumer-finance companies, stock brokerages, investment funds, and some government-sponsored enterprises.

Networking

The act of connecting with individuals or groups to exchange information and develop professional or social contacts.

Trade Show

An exhibition where companies in a specific industry showcase and demonstrate their new products and services.