Exhibit 18-4 -Imagine That There Are Only Two Nations in the World,Canada

question 121

Multiple Choice

Exhibit 18-4
-Imagine that there are only two nations in the world,Canada and Switzerland.Which of the following is true of the suppliers and demanders in this market,as represented in Exhibit 18-4?

• A)The demanders want Canadian dollars and are offering Swiss francs.
• B)The suppliers want Canadian dollars and are offering Swiss francs.
• C)Both the suppliers and the demanders are offering Canadian dollars.
• D)Both the suppliers and the demanders are offering Swiss francs.
• E)Francs are being exchanged by unknown suppliers and demanders in a money market in Switzerland; anyone could be trading.