19 Suppose that the new forward price of resister of dollars is equal to 1113 perro Further, w e that the spot exchange rate is 15 perc , and the initiation dollar deposits is 10 percent and suns et. Under these s tions. A) i s party does not hold B) interest party deeshold C) it is hard to tell whether interese party dress does not hold D) Nolene information is tower the question None of the above 20 Which one of the following is the A)Arise in the interest rate offered by dollar deposits c ! as the dollar to appreciate C B) Arise in the interesse offered by dollar deposit s the dollar to depreciate rise in the interest rate offered by dollar depois does not affect the US doll D) For a given cure increate and constant expected exchange rate are in the interest rate offered by della deposits the dollar to appreciate Now of the we 20) Which one of the following where is the most A) For a fo st are in the expected Future enchange s arise in the exchange rate B) For a fixed inc a re in the expected future exchange rates fall in the con exchange rate C) For a fixed interest in the expected exchange rate does not come a change in the current change D) For a given dollar interest rate and a constant expected exchange rate are in the interest rate of the crew the dollar to depreciate None of the above 22) Menyesas A) a medium of change a unit of account Castreef value D) All of the above E aly A and B. 23) Which one of the following is the most A) A me in the average value of transactions carried out by a houshold or a fim C its demand for m y fall B) A reduction in the average value of tractions carried out by a h older afwiss s C) A rise in the average value of transactions carried out by a household or a firma demandemory to D) A rise in the wee value ofr o n carried out by a house or a fimm demand for real money to E) None of the above seis 2) The agregate w y demand depends on As the interest Bithe ice level Cralarial income D) All of the above de is no SL. 113 percure and the first o deller 19) Suppose that the one-year forward price of c o Further assume that the spot exchange rate per deposits is 1 prontando c o n Under the A) in part des held B) interese party does hold C) is hard to whether interese party does ordres Do Not enough information is given to the None of the ove 20. Which one of the following is the A)Arise in the interest rate offered by dollar de c o loreciate B) Are in the instrui offdbydolar depouc h de C) Arne in the instrui offdby dollar depois de D) Forgive c reste d e porte edge offered by dollar deposits a s the dollar to app None of the depreciate the US dollar in the interest e sare in the cut 20) Which one of the following sements is the me A For a fired state, are in the expected nec exchange B) For a fined interest rate in the expected future che c osa fall in the current che alle des machin C) For a fixed interese are in the expected future the current exchange Do For a given eller and e of the cases the dear to depreciate E None of the r e in the interest 22 Mey were Almedim enchange. B) Case of value D) All of the above Ouly AB by a h udo afirm i s by absold or afirm causes its 21 Which one of the following is the A) A re in the average value of transactions and demand for money to B) A rodation in the wese value of transactions came demand for me to C) Arithe average of cardb demand for money to me D A rise in the wee value of wis demand for real money to nie None of the above o ra firme its d om is demand depends 24) The Athens the price level ara incom D) All of the above C 12) When a country's currency depreciates, A) foreigners find that its exports are more expensive, and domestic residents find that imports from abroad are more expensive. B) foreigners find that its exports are more expensive, and domestic residents find that imports from abroad are cheaper. C) foreigners find that its exports are cheaper; however, domestic residents are not affected. D) foreigners are not affected, but domestic residents find that imports from abroad are more expensive. E) None of the above. 13) If the goods' money prices do not change, a depreciation of the dollar against the pound A) makes British sweaters cheaper in terms of American jeans B) makes British sweaters more expensive in terms of American jeans. C) makes American jeans more expensive in terms of British sweaters. D) doesn't change the relative price of sweaters and jeans. E) None of the above. 14) Which one of the following statements is the most accurate? A) Spot exchange rates are always higher than forward exchange rates. B) Spot exchange rates are always lower than forward exchange rates. C) Spot exchange rates and forward exchanges rates are always equal D) Spot exchange rates and forward exchanges rates are equal when the value date and the date of the spot transaction are the same. E) None of the above. 15) What is the expected dollar rate of return on euro deposits with today's exchange rate at $1.10 per euro, next year's expected exchange rate at $1.166 per euro, the dollar interest rate at 10%, and the euro interest rate at 5%? A) 10% B) 11% C)-1% D) 0%