Question

A high amount of short interest is typically considered as a __________ signal, and contrarians may consider it as a _________ signal. A.bu bullish; bearishC. B. bearish; bullishB. C. bullish; falseD.be bearish; falseD.

Answer 1

A high amount of short interest is typically considered as a bearish signal, and contrarians may consider it as a bullish signal.

Step-by-step explanation:

When interest rates are high, consider that there has been a devaluation of the currency, that is, this is a sign that there has been a decrease in the value of the national currency, which is what determines the interest rate in a country. When that same interest rate is low, however, it means that there has been an increase, an appreciation of the currency and, consequently, an improvement in the economy.