If the quantity supplied of euro were greater than the quantity demanded, then the price of the
A) euro would rise.
B) euro would fall.
C) dollar would fall.
D) euro would be in equilibrium.

Question

Quizplus · Accepted Answer

If the quantity supplied of a currency is greater than the quantity demanded, there is an excess supply which puts downward pressure on the price of the currency. Therefore, the price of the euro would fall.

If the Quantity Supplied of Euro Were Greater Than the Quantity