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If Speculators Expect the Spot Rate of the Canadian Dollar

Question 66

Multiple Choice

If speculators expect the spot rate of the Canadian dollar in 30 days to be ____ than the 30-day forward rate on Canadian dollars, they will ____ Canadian dollars forward and put ____ pressure on the Canadian dollar forward rate.​


A) ​lower; sell; upward
B) ​lower; sell; downward
C) ​higher; sell; upward
D) ​higher; sell; downward

Correct Answer:

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