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

question 88

Multiple Choice

Assume that the yen/dollar exchange rate quoted in London at 3:00 p.m.is 125 yen = 1 dollar.Sylvia finds out that the rate quoted in New York at 10:00 a.m.New York time (3:00 p.m.in London) is 130 yen = 1 dollar.Sylvia decides to buy yen in New York and sell it in London.Sylvia is engaging in

• A)currency swapping.
• B)currency speculation.
• C)carry trade.
• D)arbitrage.
• E)hedging.

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Definitions:

Vasodilation

The widening of blood vessels, which decreases blood pressure and increases blood flow to specific areas of the body.

Vessel Diameter

The width of a blood vessel, which affects blood flow and pressure, and is regulated by various physiological mechanisms.

Resistance

In a broad sense, it refers to the opposition to flow or movement, such as electrical resistance in physics or the body's resistance to disease in biology.

Abdominal Aorta

The largest artery in the abdominal cavity that supplies blood to many of the abdominal and pelvic organs as well as the legs.