The Figure Given Below Depicts the Foreign Exchange Market for British

question 72

Multiple Choice

The figure given below depicts the foreign exchange market for British pounds traded for U.S. dollars.?Figure 21.2

-Refer to Figure 21.2. Suppose that the British central bank wishes to maintain a fixed exchange rate of £1 = $1.60. If supply decreases from S₁ to S₂, the bank must:

• A) buy 25 pounds to shift the supply curve from S₂ to S₁.
• B) buy 50 pounds to shift the supply curve from S₂ to S₁.
• C) sell 75 pounds to shift the supply curve from S₂ to S₁.
• D) buy 75 pounds to shift the supply curve from S₂ to S₁.
• E) sell 10 pounds to shift the supply curve from S₂ to S₁.

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Definitions:

Plasma Membrane

A bilayer of lipids and proteins that forms the external boundary of the cytoplasm of a cell, regulating the passage of molecules in and out of the cell.

Skeletal Muscle Cells

Skeletal muscle cells are long, cylindrical cells that make up skeletal muscles, responsible for voluntary movements of the body by contracting in response to voluntary nervous signals.

Mitochondria

Organelles within cells that are the site of aerobic respiration and energy (ATP) production.

Adipocytes

Cells specialized in storing fat, found in the adipose tissue of the body.