If a Speculator Expects That the Fed Will Intervene by Exchanging

question 13

Multiple Choice

If a speculator expects that the Fed will intervene by exchanging dollars for Japanese yen, she would most likely ____ to capitalize on this intervention.

• A) purchase yen put options
• B) sell yen futures contracts
• C) purchase yen call options
• D) buy U.S. Treasury bonds

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Definitions:

Outstanding Checks

Checks that have been written and recorded in the payer's accounting system but have not yet been cashed or cleared by the bank.

Balance Per Bank

The balance as per bank refers to the amount of money shown in the bank's records as available in an account.

NSF Check

A cheque that has been returned by the bank because the account on which it was drawn did not have sufficient funds, stands for Non-Sufficient Funds.

Bank Errors

Mistakes made by a bank in the processing of transactions, which can include errors in deposits, withdrawals, or charges that affect account balances.