If the Spot Rate for Swiss Francs Is

question 144

Multiple Choice

If the spot rate for Swiss francs is $.6658/franc and the six month forward rate is $.6637/franc, the market is indicating that the Swiss franc is expected to:

• A)strengthen relative to the dollar.
• B)weaken relative to the European currency.
• C)lose value relative to the dollar over the next 6 months.
• D)gain value relative to the dollar over the next 6 months.

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Definitions:

Early Stages

Initial phases or periods in a process, development, or condition, often characterized by the preliminary set of symptoms or signs.

Psychodynamic Model

A theory of psychology that emphasizes the systematic study of the psychological forces underlying human behavior, feelings, and emotions and how they might relate to early experiences.

Unconscious Internal Processes

Mental activities beneath the conscious awareness that influence thoughts, feelings, and behaviors.

Paradigm

A pattern or model of something, or a set of concepts and practices that define a scientific discipline at any particular period of time.