-Refer to Figure 17-6 above.If the Central Bank has fixed the exchange rate at $0.95 and the supply and demand for euros are as depicted,
A) the Central Bank must buy additional dollars.
B) the Central Bank must sell additional euros.
C) the Central Bank must buy additional euros.
D) the Central Bank cannot influence the exchange rate.
E) there is an excess supply of dollars.

Question

-Refer to Figure 17-6 above.If the Central Bank has fixed the exchange rate at $0.95 and the supply and demand for euros are as depicted,
A) the Central Bank must buy additional dollars. 
B) the Central Bank must sell additional euros. 
C) the Central Bank must buy additional euros. 
D) the Central Bank cannot influence the exchange rate. 
E) there is an excess supply of dollars.

Quizplus · Accepted Answer

The Answer of 
-Refer to Figure 17-6 above.If the Central Bank has fixed the exchange rate at $0.95 and the supply and demand for euros are as depicted,
A) the Central Bank must buy additional dollars. 
B) the Central Bank must sell additional euros. 
C) the Central Bank must buy additional euros. 
D) the Central Bank cannot influence the exchange rate. 
E) there is an excess supply of dollars.

-Refer to Figure 17-6 Above