If Foreign Exchange Traders Become Certain That the Value of the Yen

question 32

Multiple Choice

If foreign exchange traders become certain that the value of the yen will rise against the Australian dollar in the future,the likely result is that the:

• A) demand for yen will fall in anticipation.
• B) current value of the yen against the Australian dollar will fall.
• C) current value of the yen against the Australian dollar will rise.
• D) nominal rates in Japan will fall.

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Definitions:

Social Learning

A type of learning in which people are more likely to imitate behaviors if they have seen others rewarded for performing them, and less likely to imitate behaviors if they have seen others punished for performing them.

Bad Dog

A colloquial expression often used to describe a dog's undesirable behavior.

Social Learning

A theory that explains how people learn new behaviors, attitudes, and skills by observing the actions of others.

Instrumental Learning

Learning based on the consequences of behavior, often described through the law of effect, where behaviors followed by favorable outcomes are more likely to recur.