MBA 680 Quiz 7 | Questions and Answers | 2026 Update | 100% Correct.

WKk7 Quiz 7 - 1% attempt
The figure below shows the foreign exchange market. Dg is the nonofficial demand curve for pounds. Sg (Spring-summer) and Sg (Autumn-
vinter) are the nonofficial supply curves of pounds during the spring-summer and autumn-winter seasons, respectively. Over the full year,
~hat is the social gain if the British government maintains a fixed exchange rate at $1.90 per pound?


$L
S¢ (Spring-summer)



$220 "7 777 S¢ (Autumn-winter)
SLOO [~ T oA T T TR T
$1.60 |~ b ! :
: E E )
: ' 1 : : Dy
0 L 1 L . 1 £


30 40 50 90 4 (billions)

Multiple Choice
0




6 billion dollars.




3 billion pounds.
@]




20 billion pounds.
O




3 billion dollars.
O

, The figure below shows the foreign exchange market. Dg is the nonofficial demand curve for pounds. S (Spring-summer) and Sg (Autumn-
winter) are the nonofficial supply curves of pounds during the spring-summer and autumn-winter seasons, respectively. In the Spring-summer
period, what is the social gain if the British government maintains a fixed exchange rate at $1.90 per pound?


Se(Spring-summer)

¢ (Autumn-winter)




(billions)


Multiple Choice




O 10 billion pounds




6 billion dollars
O
@l




3 billion pounds
Ol




3 billion dollars