The Figure Given Below Depicts the Foreign Exchange Market for British

question 97

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.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:

Pharmacology

The branch of medicine concerned with the study of drug action and how medicines affect the body and how the body responds.

Metabolized

The biochemical process by which substances are transformed within an organism's body, resulting in energy production, waste elimination, or other necessary functions.

Liver

A vital organ in the body responsible for detoxification, protein synthesis, and the production of biochemicals necessary for digestion.

Pharmacokinetics

The study of what the body does to drugs: how the body absorbs, metabolizes, distributes, and excretes the drugs.