1. The equilibrium exchange rate of the Swiss franc is $0.90. At an exchange rate $.87, U.S. demand for Swiss francs would ______ the supply of francs for sale and there would be a ______ of francs in the foreign exchange market.?
a. ?be less than; surplus
b. ?exceed; shortage
c. ?be less than; shortage
d. ?exceed; surplus
2. Some capital budgeting projects contain real options in that they provide opportunities to obtain or eliminate specified real assets such as machinery or a manufacturing plant.?
a. ?False
b. ?True