tion 23 Baylor Bank believes the New Zealand dollar will depreciate over the next 60 days from A to S. The following annual interest rates apply: Currency. Lending Rate Borrowin Rats Dollars 7.10% 7 40% New Zealand dollar (NZ$) 6.80% Baylor Bank has the capacity to borrow either NZ$10 million or $5 million. If Baylor Bank's forecast is met what will its dollar profit be from speculation over the 60-day period (assuming it does not use any of one consumer deposits to capitalize on its expectations)? $521,325 $308.234. $194.151 $201.217 $208,044 Question 24 1 pts Assume that the income levels in U.K. start to go down, while U.S. income levels remain unchanged. This will place____ pressure on the value of British pound. Also, assume that U.S. interest rates go down while the British pound remains unchanged. This will place ___ pressure on the value of British pound. downward; downward upward; downward upward; upward downward; upward Question 27 1 pts A forward rate for a currency is said to exhibit a premium if The forward rate exceeds the existing spot rate The forward rate is less than the existing spot rate The forward rate exceeds the expected future spot rate The forward rate is less than the expected future spot rate None of the above