When the demand curve for foreign currency, intersects the supply curve, we get ________________ exchange rate.

Question

Quizplus · Accepted Answer

The point where the demand curve for foreign currency intersects the supply curve is where the market is in balance, and this point determines the equilibrium exchange rate. This rate reflects the price at which the quantity of the currency demanded equals the quantity supplied.

When the Demand Curve for Foreign Currency, Intersects the Supply