Any event that reduces the supply of Swiss francs to be exchanged for U.S. dollars should result in a(n) ____ in the value of the Swiss franc with respect to ____, other things being equal.
A) increase; the U.S. dollar
B) increase; nondollar currencies
C) decrease; nondollar currencies
D) decrease; the U.S. dollar

Question

Quizplus · Accepted Answer

When the supply of Swiss francs decreases, it becomes scarcer, thus increasing its value relative to other currencies, including the U.S. dollar.

Any Event That Reduces the Supply of Swiss Francs to Be