Assume That the Yen/dollar Exchange Rate Quoted in Tokyo at 5

question 76

Multiple Choice

Assume that the yen/dollar exchange rate quoted in Tokyo at 5 p.m. is ¥120 = $1, and the New York yen/dollar exchange rate at the same time (noon New York time) is ¥123 = $1. What action should a broker take to yield immediate profit?

• A) forward exchange
• B) carry trade
• C) currency swap
• D) arbitrage
• E) currency speculation

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Definitions:

Amniotic Fluid

The fluid within the amniotic sac that surrounds the embryo or fetus.

Uterus

A female reproductive organ where a fertilized egg can develop into a fetus.

Preterm Births

Births that occur before the 37th week of pregnancy, often resulting in health risks for the baby.

Prenatal Care

Recommended health care after a woman becomes pregnant and involves the monitoring of the baby’s development as well as the mother’s health.