The Figure Given Below Depicts the Foreign Exchange Market for British

question 131

Multiple Choice

The figure given below depicts the foreign exchange market for British pounds traded for U.S.dollars. Figure 22.2
- Refer to Figure 22.2.At the initial equilibrium point,with demand curve D and supply curve S₁:

• A)the price of dollar per British pound is $1.50 and the quantity of British pounds being traded is 225.
• B)the price of dollar per British pound is $1.60 and the quantity of British pounds being traded is 225.
• C)the price of dollar per British pound is $1.60 and the quantity of British pounds being traded is 300.
• D)the price of dollar per British pound is $1.75 and the quantity of British pounds being traded is 350.
• E)the price of dollar per British pound is $1.75 and the quantity of British pounds being traded is 300.

---

Definitions:

Aristotle

An ancient Greek philosopher and scientist, a student of Plato and teacher of Alexander the Great, known for his contributions to many fields of knowledge.

External Compulsion

A force or influence from outside oneself that pressures or obliges one to act in a certain way, often limiting personal freedom or choice.

Free Of Ignorance

The state of having knowledge or being aware, lacking the absence of understanding or awareness.

Condemned To Be Free

A notion popularized by existentialist philosopher Jean-Paul Sartre, suggesting that with the absence of God or predetermined essence, humans are free to make their own choices, yet are responsible for these choices.