When an Importer Goes Long in the Forward Market,they Would

question 13

Multiple Choice

When an importer goes long in the forward market,they would be

• A)buying currency for future delivery
• B)selling currency for future delivery
• C)arbitraging the interest rate differential
• D)buying a forward contract at a premium

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Definitions:

Responsiveness

The ability of a system or organization to react quickly and positively to changes or requests.

Quantity

The amount or number of a material or immaterial good that is considered disposable or usable.

Income Elasticity of Demand

Income elasticity of demand measures how the quantity demanded of a good or service changes in response to a change in consumers' income.

Quantity Demanded

In economics, the total amount of a good or service that consumers are willing and able to purchase at a given price.