If There Is Currently a Surplus of Dollars,which of the Following

question 34

Multiple Choice

If there is currently a surplus of dollars,which of the following would you expect to see in the foreign exchange market?

• A)The dollar will appreciate.
• B)The dollar will depreciate.
• C)There will be a decrease in the demand for dollars.
• D)There will be a decrease in the supply of dollars.

---

Definitions:

Natural Monopoly

A market condition where a single supplier is most efficient in producing a good or service due to high initial costs and substantial economies of scale.

Marginal Cost

The augmentation in cumulative costs linked with generating an extra unit of a product or service.

Average Cost

The overall expense of manufacturing split by the quantity of units made.

Rate of Return

The increase or decrease in value of an investment throughout a determined period, shown as a percent of the investment’s initial cost.