When Short-Term Interest Rates Become Lower in Tokyo Than in New

question 100

Multiple Choice

When short-term interest rates become lower in Tokyo than in New York,interest arbitrage operations will most likely result in a:

• A) Increase in the spot price of the yen
• B) Increase in the forward price of the dollar
• C) Sale of dollars in the forward market
• D) Purchase of yen in the spot market

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Definitions:

False Positives

Incorrect identifications where a test result improperly indicates presence of a condition (like a disease) when it is not actually present.

Test Positive

To show the presence of a particular condition or substance in a test, indicating that the condition or substance was detected.

British Columbia

A province located on the west coast of Canada, known for its natural scenery and diverse landscapes.

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Days characterized by sunshine with clear, cloudless skies.