If Canadian speculators believed the Swiss franc was going to appreciate against the U.S.dollar, they would
A) purchase Canadian dollars.
B) purchase U.S. dollars.
C) purchase Swiss francs.
D) sell Swiss francs.

Question

Quizplus · Accepted Answer

If the speculators believe that the Swiss franc is going to appreciate against the U.S. dollar, they will want to purchase Swiss francs in order to sell them at a higher price in the future. Therefore, the correct choice is C - purchase Swiss francs.

If Canadian Speculators Believed the Swiss Franc Was Going to Appreciate