The exchange rate at which demand for foreign currency becomes equal to its supply is called the exchange rate.

unequal

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equilibrium

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equal

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flexible

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Solution

The correct option is B equilibrium
The equilibrium exchange rate is the exchange rate at which demand equals supply.

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Similar questions

The exchange rate at which demand for foreign currency becomes equal to its supply is called:

Explain why the supply of a foreign currency rises in response to a rise in its exchange rate.

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