Equilibrium in the foreign exchange market occurs:
a. at the point where the foreign exchange demand and supply curves intersect.
b. at the point where the foreign exchange demand and supply curves reach maximum separation.
c. when two nations' economic leaders agree on the appropriate exchange rate.
d. when two nations' diplomatic leaders agree on an exchange rate that meets both countries' needs.
e. only by chance, if at all, because they change very frequently.
Question 2
If there is a surplus of euros at the current exchange rate, the exchange value of euros will tend to fall.
a. True
b. False
Indicate whether the statement is true or false
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