# When the price of foreign currency (the exchange rate) is above the equilibrium level ? with Answer - Economics Mcqs | TestPrep

> Solved MCQ: When the price of foreign currency (the exchange rate) is above the equilibrium level ? Correct Answer: A. an excess supply of that currency exists in the foreign exchange market. Verified answer explanation for FPSC, PPSC, MDCAT, NTS, and CSS competitive exam preparation.

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# When the price of foreign currency (the exchange rate) is above the equilibrium level ?

Direct Answer & Quick Reference

The correct option is **A. an excess supply of that currency exists in the foreign exchange market**.

A. an excess supply of that currency exists in the foreign exchange market **(Correct Answer)**

B. an excess demand for that currency exists in the foreign exchange market

C. the supply of foreign exchange shifts outward to the right

D. the supply of foreign exchange shifts backward to the left

✨ Explain with AI

Verified Key: A. an excess supply of that currency exists in the foreign exchange market
Solved by 4,458+ students

Verified against official examination board answer keys and standard curriculum textbooks.

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