If Speculators Expect the Spot Rate of the Yen in 60

question 51

Multiple Choice

If speculators expect the spot rate of the yen in 60 days to be ____ than the 60-day forward rate on the yen, they will ____ the yen forward and put ____ pressure on the yen's forward rate.​

• A) ​higher; buy; upward
• B) ​higher; sell; downward
• C) ​higher; sell; upward
• D) ​lower; buy; upward

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Definitions:

Double-Blind Procedure

A research experiment in which neither the participants nor the experimenters know who is receiving a particular treatment, minimizing the risk of bias.

Medication

Substances used for medical treatment, especially for the diagnosis, treatment, or prevention of disease.

Analogue Observation

Observation of behaviors in a simulated or structured environment akin to real-life situations, used in psychological assessment and research.