What Is the Expected Spot Rate of ¥/$(Canadian) One Year

question 93

Multiple Choice

What is the expected spot rate of ¥/$(Canadian) one year from now if the current spot rate is ¥66/$and the Yen is selling one-year forward at ¥70/$?

• A)¥78.9/$
• B)¥98.0/$
• C)¥66/$
• D)¥70/$

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Definitions:

Laboratory Experiment

A research method in which variables are controlled and manipulated in a lab setting to observe their effect on other variables, allowing for high levels of control and precision.

Quantitative Research

A research method focused on obtaining data through measurable, numerical information and statistical analysis to understand patterns and relationships.

Measurable Data

Quantifiable information that can be objectively measured and analyzed to draw conclusions or make decisions.

Reinforcement

A principle in behavior psychology where an outcome strengthens an individual's future behavior whenever that behavior is preceded by a specific antecedent stimulus.