The Equilibrium Exchange Rate of Pounds Is $1

question 61

Multiple Choice

The equilibrium exchange rate of pounds is $1.70. At an exchange rate of $1.72 per pound:

• A) U.S. demand for pounds would exceed the supply of pounds for sale and there would be a shortage of pounds in the foreign exchange market.
• B) U.S. demand for pounds would be less than the supply of pounds for sale and there would be a shortage of pounds in the foreign exchange market.
• C) U.S. demand for pounds would exceed the supply of pounds for sale and there would be a surplus of pounds in the foreign exchange market.
• D) U.S. demand for pounds would be less than the supply of pounds for sale and there would be a surplus of pounds in the foreign exchange market.
• E) U.S. demand for pounds would be equal to the supply of pounds for sale and there would be a shortage of pounds in the foreign exchange market.

---

Definitions:

Higher-Level Needs

Needs at the top of Maslow's hierarchy, including esteem and self-actualization needs, which focus on achieving one's potential and self-fulfillment.

Successful Companies

Businesses that achieve their goals and excel in their industry, often marked by financial profitability, innovation, and high customer satisfaction.

Jeffrey Pfeffer

An American business theorist and professor at Stanford Business School, known for his work on organization theory and management.

Successful Leader

An individual who achieves desired results or outcomes through effective guidance, influence, and management of others.