Refer to Figure 20.3 for the Following Questions

question 42

Multiple Choice

Refer to Figure 20.3 for the following questions.
Figure 20.3
-Suppose the above graph in Figure 20.3 represents the market for the British pound under the Bretton Woods System.If the par exchange rate was set at 2 US dollars and the situation persisted,

• A) the currency would be overvalued.
• B) there would need to be devaluation of the currency.
• C) the supply of pounds would be less than the demand for pounds.
• D) the supply of pounds would be greater than the demand for pounds.

---

Definitions:

Nearby Objects

Items or entities located in close proximity to a reference point or subject, often relevant in studies of attention, perception, and spatial relationships.

Car

A wheeled motor vehicle used for transporting passengers, which also serves as a symbol of personal freedom and mobility.

Gigantic UFO

Typically refers to an unusually large unidentified flying object reported in some sightings, often characterized by its massive size and unidentified nature.

Incredible Velocity

An extremely high speed that seems difficult to believe or astonishing.