Currently,a U

question 34

Multiple Choice

Currently,a U.S.trader notes that in the 6-month forward market,the Japanese yen is selling at a premium (that is,you receive more dollars per yen in the forward market than you do in the spot market) ,while the British pound is selling at a discount.Which of the following statements is CORRECT?

• A) If interest rate parity holds,6-month interest rates should be the same in the U.S. ,Britain,and Japan.
• B) If interest rate parity holds among the three countries,the United States should have the highest 6-month interest rates and Japan should have the lowest rates.
• C) If interest rate parity holds among the three countries,Britain should have the highest 6-month interest rates and Japan should have the lowest rates.
• D) If interest rate parity holds among the three countries,Japan should have the highest 6-month interest rates and Britain should have the lowest rates.
• E) If interest rate parity holds among the three countries,the United States should have the highest 6-month interest rates and Britain should have the lowest rates.

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Definitions:

Lack of Empathy

A deficiency in the ability to understand and share the feelings of another, often resulting in difficulties in social interactions and relationships.

Cortex

The outer layer of the cerebrum of the brain, involved in various high-level brain functions such as thought, memory, and action.

Glial Cells

Non-neuronal cells in the central and peripheral nervous systems that support, nourish, and protect neurons, playing a crucial role in maintaining homeostasis and forming myelin.

Synapse

The junction between two neurons, where neurotransmitters are released to transmit signals from one neuron to another.