Equilibrium in the Foreign Exchange Market Occurs

question 47

Multiple Choice

Equilibrium in the foreign exchange market occurs:

• A)at the point where the foreign exchange demand and supply curves intersect.
• B)at the point where the foreign exchange demand and supply curves reach maximum separation.
• C)when two nations' economic leaders agree on the appropriate exchange rate.
• D)when two nations' diplomatic leaders agree on an exchange rate that meets both countries' needs.
• E)only by chance,if at all,because they change very frequently.

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