If the exchange rate in the foreign exchange market is quoted as U.S. cents per Canadian dollar and it exceeds the market equilibrium, how is market equilibrium restored?

Question

Accepted Answer

The exchange rate will fall because a surplus of Canadian dollars exists.

Answer

The exchange rate will fall because a shortage of Canadian dollars exists.

Answer

The value of the exchange rate will rise because currency demanded is Canadian dollars.

Answer

The exchange rate will rise because a surplus of Canadian dollars exists.

Answer

The value of the exchange rate will fall because currency supplied is U.S. dollars.

Crowdly

If the exchange rate in the foreign exchange market is quoted as U.S. cents per ...

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