1. China and Japan are running with annual inflation rates of 6% and 10% respectively. The Currency spot exchange rate is JPY17.80/CNY. What should be the value of CNY in one year ?

A- 18.47169 JPY

B- 17.15272 CNY

C- 18.47169 CNY

D- 17.15272 JPY

2. China and Japan are running with annual inflation rates of 6% and 10% respectively. The expected one-month Currency spot exchange rate is JPY17.33/CNY. What should be the current spot rate between CNY and JPY?

A- 17.98396 JPY

B- 16.6998 CNY

C- 17.98396 CNY

D- 16.6998 JPY

3. If the inflation rate in China is of 4%. The Currency spot exchange rate is JPY17.46/CNY and one year expected spot exchange rate is JPY 17.42/CNY. What should be the inflation rate in Japan?

A- 3.7617%

B- 0.042388 %

C- 4.2388%

D- 0.037617 %

4. If the inflation rate in Japan is of 18%. The Currency spot exchange rate is JPY17.19/CNY and one year expected spot exchange rate is JPY 17.12/CNY. What should be the inflation rate in China? A- 18.48%

B- 0.1751 %

C- 17.51%

D- 0.1848 %