In 2011, an array of factors, including the conflict in Libya, contributed to soaring oil prices. One

Question:

In 2011, an array of factors, including the conflict in Libya, contributed to soaring oil prices. One of the beneficiaries of the situation was Venezuela, whose main export was (and is) oil. Venezuela had a fixed (the Bolivar was pegged to the U.S. dollar) and low international capital mobility. How would the increased value of Venezuelan oil exports affect:
a. Venezuela's nominal, bilateral (Bolivar: U.S. dollar) (i.e., $/VEF or VEF/$)? (Show graphically and briefly explain)
b. Venezuela's real risk-free interest rate? (Show graphically and briefly explain)
c. Venezuela's reserve assets?
Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...