If You Are a Currency Speculator, You Will Always Make

question 58

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:

Social Cognitive

A theory that emphasizes how cognitive, behavioral, personal, and environmental factors interact to determine motivation and behavior.

Phenomenological

Pertaining to phenomenology, a philosophical approach that emphasizes the subjective experience of individuals and how they interpret the world around them.

Behaviourism

A psychological approach focusing on observable behaviors and their environmental determinants, emphasizing the effects of learning and conditioning.

Observational Learning

A learning process through which behaviors are acquired by watching and imitating others.