18) Which one of the following statements is the most accurane? A) Since dollar and yen interest rates ane measured is comparable terms, thay can move quite differently over time. B) Since dollar and yen interest rates are not measured in comparable terms, they can move quite differently over time. ) Since dollar and yen interest raes are measurod in comparable terms, they move quite the same over ime. D) Since dollar and yen interest rates are measured in comparable tems, they still move quite differently over time E None of the above 19) Suppose that the one-yer forward price of euros in terms of dollars is equai to $1.113 per e Furher, assume that the spot exchange rate is S1.05 per ouro, and the interest rate en dollar deposits is 10 percent and cn curo it is 4 percent. Under these assumpticns A) intenest parity does not hold B) interest parity does hold C is hard to tell whether interest parity does or does not hold D) Not enough infomarien is given to answer the question E) Nene of the above. 20) Which one of the following statements is the most accurane A)A rise in the interest rate offered by dollar deposits causes the dollar to appeciane B)A rise in the intesest rate offcrod by dollar deposits causes the dollar to depeociate C)A rise in the intenest rate offerod by dollar deposits does not affect the U.S. dellar D) For a given eure interest rate and constant expected exchange rane, a rise in the interest rate offered by dollar deposits causes the dollar to appreciate E) None of the above. 21)Which one of the following statements is the most accurate A) For a fixed inerest rate, a rise in the expected future exchanpe rate causes a rise in the cument exchange rate. B) For a fixed interest rate, a rise in the expectod future echange rate causes a fill in the cum exchange rate. c) For a fived interest rae, a rise in the expected future exchange rate does not cause a change in the current exchange rate D) For a given dollar interest rate and a constant expected exchange rate, a rise in the interest rane of the curo causes the dollar to depreciate. E) Nene of the above. 22) Money serves as A) a medium of exchange. B)a unit of account C)a ere of valuc D) All of the above. E) Only A and B. 20) Which one of the following statements is the most accurate? A) A rise in the interest rate offered by dollar deposits causes the dollar to appreciate. B)A rise in the interest rate offered by dollar deposits causes the dollar to depreciate. C)A rise in the interest rate offered by dollar deposits does not affect the U.S. dollar D) For a given euro interest rate and constant expected exchange rate, a rise in the interest rate offered by dollar deposits causes the dollar to appreciate. E) None of the above. 21) Which one of the following statements is the most accurate? A) For a fixed interest rate, a rise in the expected future exchange rate causes a rise in the current exchange rate. B) For a fixed interest rate, a rise in the expected future exchange rate causes a fall in the current exchange rate. C) For a fixed interest rate, a rise in the expected future exchange rate does not cause a change in the current exchange rate. D) For a given dollar interest rate and a constant expected exchange rate, a rise in the interest rate of the euro causes the dollar to depreciate. E) None of the above. 22) Money serves as A) a medium of exchange B) a unit of account C)a store of value. D) All of the above E) Only A and B. 23) Which one of the following statements is the most accurate? A) A rise in the average value of transactions carried out by a household or a firm causes its demand for money to fall. B) A reduction in the average value of transactions carried out by a household or a firm causes its demand for money to rise. C) A rise in the average value of transactions caried out by a household or a firm causes its demand for money to rise. D) A rise in the average value of transactions carried out by a household or a firm causes its demand for real money to rise. E) None of the above. 18) Which one of the following statements is the most accurane? A) Since dollar and yen interest rates ane measured is comparable terms, thay can move quite differently over time. B) Since dollar and yen interest rates are not measured in comparable terms, they can move quite differently over time. ) Since dollar and yen interest raes are measurod in comparable terms, they move quite the same over ime. D) Since dollar and yen interest rates are measured in comparable tems, they still move quite differently over time E None of the above 19) Suppose that the one-yer forward price of euros in terms of dollars is equai to $1.113 per e Furher, assume that the spot exchange rate is S1.05 per ouro, and the interest rate en dollar deposits is 10 percent and cn curo it is 4 percent. Under these assumpticns A) intenest parity does not hold B) interest parity does hold C is hard to tell whether interest parity does or does not hold D) Not enough infomarien is given to answer the question E) Nene of the above. 20) Which one of the following statements is the most accurane A)A rise in the interest rate offered by dollar deposits causes the dollar to appeciane B)A rise in the intesest rate offcrod by dollar deposits causes the dollar to depeociate C)A rise in the intenest rate offerod by dollar deposits does not affect the U.S. dellar D) For a given eure interest rate and constant expected exchange rane, a rise in the interest rate offered by dollar deposits causes the dollar to appreciate E) None of the above. 21)Which one of the following statements is the most accurate A) For a fixed inerest rate, a rise in the expected future exchanpe rate causes a rise in the cument exchange rate. B) For a fixed interest rate, a rise in the expectod future echange rate causes a fill in the cum exchange rate. c) For a fived interest rae, a rise in the expected future exchange rate does not cause a change in the current exchange rate D) For a given dollar interest rate and a constant expected exchange rate, a rise in the interest rane of the curo causes the dollar to depreciate. E) Nene of the above. 22) Money serves as A) a medium of exchange. B)a unit of account C)a ere of valuc D) All of the above. E) Only A and B. 20) Which one of the following statements is the most accurate? A) A rise in the interest rate offered by dollar deposits causes the dollar to appreciate. B)A rise in the interest rate offered by dollar deposits causes the dollar to depreciate. C)A rise in the interest rate offered by dollar deposits does not affect the U.S. dollar D) For a given euro interest rate and constant expected exchange rate, a rise in the interest rate offered by dollar deposits causes the dollar to appreciate. E) None of the above. 21) Which one of the following statements is the most accurate? A) For a fixed interest rate, a rise in the expected future exchange rate causes a rise in the current exchange rate. B) For a fixed interest rate, a rise in the expected future exchange rate causes a fall in the current exchange rate. C) For a fixed interest rate, a rise in the expected future exchange rate does not cause a change in the current exchange rate. D) For a given dollar interest rate and a constant expected exchange rate, a rise in the interest rate of the euro causes the dollar to depreciate. E) None of the above. 22) Money serves as A) a medium of exchange B) a unit of account C)a store of value. D) All of the above E) Only A and B. 23) Which one of the following statements is the most accurate? A) A rise in the average value of transactions carried out by a household or a firm causes its demand for money to fall. B) A reduction in the average value of transactions carried out by a household or a firm causes its demand for money to rise. C) A rise in the average value of transactions caried out by a household or a firm causes its demand for money to rise. D) A rise in the average value of transactions carried out by a household or a firm causes its demand for real money to rise. E) None of the above