If a Speculator Expects That the Fed Will Intervene by Exchanging

question 97

Multiple Choice

If a speculator expects that the Fed will intervene by exchanging euros for U.S. dollars, she would most likely ____ to capitalize on this intervention.

• A)purchase euro put options
• B)purchase euro futures contracts
• C)purchase yen call options
• D)sell U.S. Treasury bonds

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Definitions:

FUTA

The Federal Unemployment Tax Act institutes a payroll levy on companies to support state employment organizations.

SUTA

State Unemployment Tax Act; a payroll tax that employers pay to fund their state's unemployment insurance.

FICA-OASDI

The Federal Insurance Contributions Act, also known as Old Age, Survivors, and Disability Insurance, is a payroll tax which finances Social Security and Medicare programs within the United States.

SUTA

State Unemployment Tax Act, which requires employers to contribute to the state unemployment insurance program.