Change in the Equilibrium Exchange RateIncrease in demand schedule: Banks will increase the exchange to the level at which the amount demanded is equal to the amount supplied in the foreign exchange market.Decrease in demand schedule: Banks will reduce the exchange to the level at which the amount demanded is equal to the amount supplied in the foreign exchange market.Increase in supply schedule: Banks will reduce the exchange to the level at which the amount demanded is equal to the amount supplied in the foreign exchange market.Decrease in supply schedule: Banks will increase the exchange to the level at which the amount demanded is equal to the amount supplied in the foreign exchange market.