22. If the direct price of the USD is DM2.7 in 1990 Frankfurt and transaction costs were 0.43% of the amount transacted, then the minimum - maximum direct quotes for the DM in New York were:

A. $2.5779-2.6218

B. $0.3672-0.3736

C. $2.5891-2.6109

D. $0.3730 - 0.3762

23. Suppose the value of the Polish zloty moves from Z 1100 = $1 at the start of the year to Z 1750 at the end of the year. At the same time, the Polish price level changes from an index of 100 on January 1 to 128 on December 31, U.S. inflation during the year was 4.2%. If the one-year interest rate on the zloty is 46%, what was the real dollar cost of borrowing the zloty during the year?

A. -8.76%

B. -11.93%

C. 27.81%

D. 17.53%

24. Let the inflation rate in Belize be 3.3&. At the same time, the inflation rate in the U.S. is 2.9%. According to PPP, the Belize dollar (BBD) should _____ by _____%

A. Depreciate; 0.387%

B. Appreciate; 0.387%

C. Appreciate; 1.387%

D. Depreciate; 1.387%

25. The world's largest currency trading market is

A. New York, B. Tokoyo, C. London, D. Frankfurt

26. Suppose the following direct quotes are received for spot and 1 - month French Francs in New York: 0.1260-68,4 - 6. Then the outright 30-day forward quote for the French is:

A. .1254-64

B. .1264-74

C. .1266-72

D. .1256-62