If Currency Traders Are Anticipating a Currency's Foreign Exchange Value

question 51

Multiple Choice

If currency traders are anticipating a currency's foreign exchange value to increase,the:

• A) current foreign exchange value of the currency will decrease.
• B) current foreign exchange value of the currency will increase.
• C) demand for the currency will fall in anticipation.
• D) country's nominal interest rate will fall.

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Definitions:

Correlation

An index quantifying the degree to which two variables exhibit concomitant variation.

Degrees Celsius

A unit of temperature on the Celsius scale, a temperature scale originally known as the centigrade scale, where 0 degrees represents the freezing point of water and 100 degrees its boiling point at sea level.

Public Service Announcement

A message broadcast on television, radio, or public spaces to inform or educate the public about an issue of public interest.

Scatterplot

A graph utilized in statistical analysis to visually present and contrast two variables across a dataset.