The Figure Given Below Depicts the Foreign Exchange Market for British

Multiple Choice

The figure given below depicts the foreign exchange market for British pounds traded for U.S. dollars.Figure 22.2

-Which of the following holds true, if goods sell for the same price worldwide when converted to a common currency?

A) A high rate of inflation exists.
B) A fixed exchange-rate system exists.
C) Purchasing power parity exists.
D) The foreign exchange market is in equilibrium.
E) Arbitrage opportunities exist.