​Assume That a Currency's Spot and Future Prices Are the Same

question 61

Multiple Choice

​Assume that a currency's spot and future prices are the same, and the currency's interest rate is higher than the U.S. rate. The actions of U.S. investors to lock in this higher foreign return would ____ the currency's spot rate and ____ the currency's futures price.

• A) ​put upward pressure on; put upward pressure on
• B) ​put downward pressure on; put upward pressure on
• C) ​put upward pressure on; put downward pressure on
• D) ​put downward pressure on; put downward pressure on

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Definitions:

Aggregate Plan

A plan that outlines a company's production rates, inventory, staffing levels, and other variables to meet forecasted demand while minimizing costs over a specific time period.

Constraints

Limitations or restrictions that affect the development, operation, or outcome of a process or system.

Supply Chain Management

The oversight of materials, information, and finances as they move from supplier to manufacturer to wholesaler to retailer to consumer.

Aggregate Planning

A marketing activity that involves developing, maintaining and analyzing broad, long-term operational schedules that facilitate decision-making processes.