In the case where the spot and forward rates are equal, the currency is said to be selling

A) profitably.
B) flat.
C) normal.
D) risky.

B

Economics

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A country initially has an equilibrium real interest rate of 4 percent and an equilibrium quantity of investment of $2 trillion. The government's budget deficit then increases. According to the crowding-out effect, the

A) demand for loanable funds curve shifts rightward, the real interest rate rises, and investment decreases. B) supply of loanable funds curve shifts rightward, the real interest rate rises, and investment increases. C) supply of loanable funds curve shifts leftward, the real interest rate falls, and investment decreases. D) demand for loanable funds curve shifts leftward, the real interest rate falls, and investment increases. E) demand for loanable funds curve shifts rightward, the real interest rate falls, and investment increases.

Economics

Betty and Ann live on a desert island. With a day's labor, Ann can produce 8 fish or 4 coconuts; Betty can produce 6 fish or 2 coconuts

Ann's opportunity cost of producing 1 coconut is ________ and she should specialize in the production of ________. A) 8 fish per coconut; fish B) 2 fish per coconut; coconuts C) 6 fish per coconut; coconuts D) 0 fish per coconut; coconuts

Economics