The following question are based on the following diagram, showing the market for Swiss francs. Assume Switzerland and the United States are engaged in a system of fixed exchange rates. The official rate is $0.40 per franc.

-If the Swiss government does nothing and the U.S.government attempts to remedy the situation by buying and selling currencies,it must ________ billion worth of Swiss francs.
A) buy $150
B) buy $120
C) buy $80
D) sell $80
E) sell $40

Question

The following question are based on the following diagram, showing the market for Swiss francs. Assume Switzerland and the United States are engaged in a system of fixed exchange rates. The official rate is $0.40 per franc.
 
-If the Swiss government does nothing and the U.S.government attempts to remedy the situation by buying and selling currencies,it must ________ billion worth of Swiss francs.
A) buy $150 
B) buy $120 
C) buy $80 
D) sell $80 
E) sell $40

Quizplus · Accepted Answer

The Answer of The following question are based on the following diagram, showing the market for Swiss francs. Assume Switzerland and the United States are engaged in a system of fixed exchange rates. The official rate is $0.40 per franc.
 
-If the Swiss government does nothing and the U.S.government attempts to remedy the situation by buying and selling currencies,it must ________ billion worth of Swiss francs.
A) buy $150 
B) buy $120 
C) buy $80 
D) sell $80 
E) sell $40

The Following Question Are Based on the Following Diagram, Showing