Suppose the Spot Exchange Rate Between U

question 59

Multiple Choice

Suppose the spot exchange rate between U.S.dollars and the U.K.pound is $2/£ while the forward rate is $1.90/£.Which one of the following is true?

• A)The value of the U.K.pound is expected to remain constant.
• B)The U.K.pound is selling at a premium.
• C)The U.K.pound is selling at a discount.
• D)The U.K.pound is expected to appreciate.
• E)The U.S.dollar is expected to depreciate.

Learn how to formulate and differentiate between null, alternative, research, and implied hypotheses.

Grasp the concept of sampling and generalization from sample to population.

Develop the ability to identify and formulate research questions and hypotheses.

Know the differences between directional and nondirectional hypotheses and tests.

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Definitions:

Altered State

A condition which is significantly different from a normative waking state, due to various factors like meditation, drugs, or sleep deprivation.

Brain Activity

The various physical and physiological functions carried out by the brain, including neural activity, blood flow, and energy consumption.

Circadian Rhythm

An internal biological clock that regulates the sleep-wake cycle over a roughly 24-hour period.

Dissociation

describes a psychological state in which a person disconnects from their thoughts, feelings, memories, or sense of identity, often as a response to traumatic events.