If You Are a Currency Speculator,you Will Always Make Money

question 60

Multiple Choice

If you are a currency speculator,you will always make money by:

• A) buying currency with high interest rate.
• B) buying currency with low interest rate.
• C) accurately predicting whether exchange rate will change more or less than the interest rate differential.
• D) buying the currency with the highest interest rate differential.

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Definitions:

International Organization

An entity composed of members from different countries operating across national boundaries, typically formed to address common interests or issues.

Arbitration

A form of alternative dispute resolution where a neutral third party makes a binding decision to resolve a dispute.

Original Contract

The initial agreement made between parties, detailing the terms, conditions, and obligations to which all parties have agreed.

Negotiated Rulemaking

A process in administrative law where regulators develop rules by involving those who will be significantly affected by them, aiming for consensus.