Assume That the Yen/dollar Exchange Rate Quoted in Tokyo at 3:00

question 21

Multiple Choice

Assume that the yen/dollar exchange rate quoted in Tokyo at 3:00 p.m. is ×120 = $1, and the yen/dollar exchange rate quoted in New York at the same time is ×123 = $1. A dealer in New York uses dollars to purchase yen and then immediately sells the yen to buy dollars in Tokyo, thereby making a profit. The dealer has engaged in a(n) _____.

• A) currency swap
• B) arbitrage
• C) carry trade
• D) straddle

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Definitions:

Face-to-face Interviews

A qualitative research method involving direct, in-person conversation between an interviewer and respondent to gather data.

Qualitative Data

Non-numerical information collected through observation, interviews, or open-ended questions that provides insights into people's beliefs, experiences, and behaviors.

Lasting Impact

A durable effect or influence that persists over a long period of time.

Mixed Methods Study

An approach that combines quantitative and qualitative research methods in a single study to understand a research problem from multiple perspectives.