23)The Fed will meet next week to decide the interest rate on the U.S. dollar. The current interest rate is 0.25%. The markets consensus is that the Fed will leave the rate unchanged in the coming meeting. According to the asset pricing approach, the U.S. dollar will appreciate if the Fed raises the interest rate to 0.5%.

Select one:

a. True

b. False

22) The U.S. economy is on the track of sustainable growth now. This leads to fears of inflation and likely action by the Federal Reserve to raise interest rates to contain the inflation. Based on the asset pricing approach, the U.S. dollar is going to become weaker.

Select one:

a. True

b. False