The Risk of Unexpected Change in the Relationship Between Currency

question 19

Multiple Choice

The risk of unexpected change in the relationship between currency futures prices and currency spot prices is called ______.

• A) basis risk
• B) currency risk
• C) exchange rate risk
• D) interest rate risk
• E) None of the above

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Definitions:

George Vaillant

A psychiatrist known for his research on aging and adult development, particularly for his work on the Grant Study, a longitudinal study of men's lives.

Realistic Period

The third stage of Ginzberg’s theory, which occurs in early adulthood, when people begin to explore specific career options, then narrow their choices and make a commitment.

Fantasy Period

According to Ginzberg, the period, lasting until about age 11, when career choices are made, and discarded, without regard to skills, abilities, or available job opportunities.

Social Clock

The culturally determined psychological timepiece providing a sense of whether we have reached the major benchmarks of life at the appropriate time in comparison to our peers.