The Current U

question 5

Multiple Choice

The current U.S. dollar-yen spot rate is ¥125/$. If the 90-day forward exchange rate is ¥127/$ then the yen is selling at a per annum ________ of ________.

• A) premium; 1.57%
• B) premium; 6.30%
• C) discount; 1.57%
• D) discount; 6.30%

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Definitions:

Peripheral Chemoreceptors

Sensory receptors located in the carotid bodies and aortic bodies that detect changes in the chemical composition of the blood, primarily oxygen, carbon dioxide, and pH levels.

Irritant Receptors

Sensory nerve endings that respond to chemical, mechanical, or thermal stimuli by initiating the reflex actions such as coughing or sneezing.

Expiratory Muscles

Muscles involved in the process of expelling air out of the lungs, such as the internal intercostal muscles and abdominal muscles.

Respiration

The biochemical process by which cells convert glucose and oxygen into energy, carbon dioxide, and water.