Equilibrium in the foreign currency markets means that the U.S. dollar establishes a stable price vis-à-vis the British pound, but not necessarily with other foreign currencies.

Question

Quizplus · Accepted Answer

Equilibrium in the foreign currency markets means that supply and demand for each currency are in balance, but it does not guarantee that the U.S. dollar will have a stable price relative to any specific currency, including the British pound, as exchange rates can fluctuate based on various factors.

Equilibrium in the Foreign Currency Markets Means That the U