Show me how to post my homework

Just do my homework!

  • HTML tags will be transformed to conform to HTML standards.
  • Add rel="nofollow" to external links
Tutorial
Submitted by pavan1001 on Tue, 2013-10-15 06:51
due date not specified
answered 1 time(s)
pavan1001 is willing to pay $10.00
pavan1001 bought 30 out of 249 answered question(s)

FIN 535 INTERNATIONAL FINANCE : QUIZ4 : 5 QUESTIONS

FIN 535 – International Finance



quiz 4 for help 



Question 1



According to the international Fisher effect, if Venezuela has a much higher nominal rate than other countries, its inflation rate will likely be ____ than other countries, and its currency will ____.



 

  

lower; strengthen

  

lower; weaken

  

higher; weaken

  

higher; strengthen



1 points   



Question 2





The Fisher effect is used to determine the:



 

  

real inflation rate.

  

real interest rate.

  

real spot rate.

  

real forward rate.



Question 3



According to the IFE, if British interest rates exceed U.S. interest rates:



 

  

the British pound's value will remain constant.

  

the British pound will depreciate against the dollar.

  

the British inflation rate will decrease.

  

the forward rate of the British pound will contain a premium.

  

today's forward rate of the British pound will equal today's spot rate.



Question 4



Which of the following theories suggests that the percentage difference between the forward rate and the spot rate depends on the interest rate differential between two countries?



  

purchasing power parity (PPP).

  

triangular arbitrage.

  

international Fisher effect (IFE).

  

interest rate parity (IRP).



Question 5

 

Assume that the U.S. inflation rate is higher than the New Zealand inflation rate. This will cause U.S. consumers to ____ their imports from New Zealand and New Zealand consumers to ____ their imports from the U.S. According to purchasing power parity (PPP), this will result in a(n) ____ of the New Zealand dollar (NZ$).

  

reduce; increase; appreciation

  

increase; reduce; appreciation

  

reduce; increase; depreciation

  

reduce; increase; appreciation



 
Answer
Submitted by pavan1001 on Tue, 2013-10-15 06:52
teacher rated 31 times
4.580645
price: $10.00

100% CORRECT ANSWER

body preview (33 words)

xxxxxxx x

xx

xxxxxx xxxxx 4  : 5 xxx xxxxxxxxx :

xx

Q1. xx higher; xxxxxxx

 

Q2. xx real interest rate.

xx

xxx B. xxx xxxxxxx pound will depreciate xxxxxxx xxx dollar.

 

xxx xx xxxxxxxx xxxx xxxxxxx

xx

Q5. B. increase; reduce;  xxxxxxxxxxxxx


Buy this answer