If a trader thinks that the value of yen with respect to the euro is about to fall, which of the following would enable him to make a profit?
A) buy a forward contract for euros
B) buy a forward contract for yen
C) sell yen in the spot market
D) buy euros in the spot market
Question 2
If you wanted to understand how an economy grew without looking at the impact of inflation, you should use ________ to compare different times within the economy.
A) real GDP
B) nominal GDP
C) the CPI
D) the GDP deflator
