13)

1. Which of the following leads central banks to maintain high interest rates?

   		Capital shortage
   		Inflation
   		Capital Shortage and Inflation
   		None

14)

1. Which of the following is correct for the Purchasing Power Parity (PPP) theory?

   		Exchange rate between two countries must be equal to the ratio of the two countries's interest rates
   		Exchange rate between two countries must be equal to the ratio of the two countries's money supplies
   		Exchange rate between two countries must be equal to the ratio of the two countries's real income levels
   		Exchange rate between two countries must be equal to the ratio of two countries's price levels