In 1987,currency speculator Andy Krieger made a lucrative currency trade.Believing that the New Zealand dollar was overvalued,Krieger bet on its fall,selling hundreds of millions of dollars at a time and pushing its value down.He profited by re-buying New Zealand dollars when the price bottomed out.What Krieger was engaging in was a (an)
A) discount position
B) premium position
C) short position
D) long position

Question

Quizplus · Accepted Answer

Krieger's bet on the fall of the New Zealand dollar involved selling it at a high price and profiting from buying it back at a lower price. This is known as taking a short position in the currency market. Therefore, the correct answer is (C) short position.

In 1987,currency Speculator Andy Krieger Made a Lucrative Currency Trade