MCQ 11 Mark
The equilibrium exchange rate is determined at the point where the


- ADemand for and Supply of foreign exchange has maximum gap
- BDemand for and Supply of foreign exchange has normal gap
- CDemand for and Supply of foreign exchange has minimum gap
- DDemand for and Supply of foreign exchange is equal
Answer
View full question & answer→(d) Demand for and Supply of foreign exchange is equal
Explanation : At this point, the market for foreign exchange gets cleared
Explanation : At this point, the market for foreign exchange gets cleared