Fixed and Floating Exchange Rates
Exchange rate ($/€) | Quantity of euros (€) demanded | Quantity of euros (€) supplied |
1.40 | 280 | 430 |
1.00 | 360 | 360 |
0.90 | 430 | 280 |
Quantities represent millions of euros traded per day.
Refer to the data in the table. If the European Central Bank wanted to support a fixed exchange rate of $1.40 per euro, it would need to ________ million euros per trading day.
◦ buy 75
◦ buy 150
◦ sell 150
◦ sell 75