-Using the Table Above, If the Current Market Value of

question 176

Multiple Choice

$$\begin{array} { | l | l | } \hline \text { Investor } & \begin{array} { l } \text { Expected future value of a } \\\text { dollar (francs per doll ar) }\end{array} \\\hline \text { Investor A } & 120 \\\hline \text { Investor B } & 100 \\\hline \text { Investor C } & 85 \\\hline\end{array}$$
-Using the table above, if the current market value of the dollar is 90 francs,

• A) all three investors expect the dollar to appreciate.
• B) all three investors expect the dollar to depreciate.
• C) investor C expects dollar depreciation, but A and B expect appreciation.
• D) investor A expects dollar appreciation, but B and C expect depreciation.

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Definitions:

Trade Negotiations

Formal discussions and agreements between countries focused on the terms of trade, including tariffs, access to markets, and other related policies.

GATT

The General Agreement on Tariffs and Trade, an international treaty designed to promote international trade by reducing or eliminating trade barriers such as tariffs.

North American

Pertaining to or relating to the continent that comprises Canada, the United States, Mexico, and the countries of Central America.

Trade Agreement

A contract between nations regarding their trade relationships, including terms on tariffs, trade restrictions, and other aspects of international trade.