25) Os Purchasing Pewer Parity, the intemasenul Fischer Emect, and interent faste Parity, 40) Which cursency forecasting technique imvolves the ute of relationships between sconsmic which theory focuses on how a currency's spot rate will change over time? variables and exchange rales? a) Purchasing Power Party b) Intemutional Fisther d) Bath a and e e) Bath a and b a) Technical 3t Purchasing Power Parity, the intemationai Fischer Emect, and interest fate Parity. b) Findampetal d) Mres 30) Ot Purchasing Power Paily, the intemational Fischer Emect, and interest thale Parity. which theory sogpests that the spot rate wit change in accondance with the infiation d) None of the above witch theory sudgests that the spot ditleremat befeten two countriest 30) Which eurrency toreaving technique imvolves the use of histerical eschange rate dath to 41) Wich of the following is not a determinant of tranalatisn exposure? a) Purchasing Power Party b) insemational Fiscter EHed a) The proportion of ts tusiness eoroucted by tereign subcidiaries ci) Interest Rute Paity b) The lociewns of as botwin absedwes d) Bath a and c ef Boma ind b d) The accounting matiode that a usee a) Al of the abeve a) Texhrical b) Fundanental 45) Which individual in the 05 is more or less respensible lor Us imerest rase med forelgn c) Movet based d) Mixed a) Areteony Banten 35) Of Purchasing Power Parity, the International Fischer Effect, and Interest Rate Parity, which theory focuses on how a currency's spot rate will change over time? a) Purchasing Power Parity b) International Fischer Effect c) Interest Rate Parity d) Both a and c e) Both a and b 36) Of Purchasing Power Parity, the International Fischer Effect, and Interest Rate Parity, which theory suggests that the spot rate will change in accordance with the inflation differential between two countries? a) Purchasing Power Parity b) International Fischer Effect c) Interest Rate Parity d) Both a and c e) Both a and b 37) Of Purchasing Power Parity, the International Fischer Effect, and Interest Rate Parity, which theory discusses high inflation and nominal interest rates between two countries? a) Purchasing Power Parity b) International Fischer Effect c) Interest Rate Parity d) Both a and c e) Both a and b 38) Why do multi-nationals require exchange rate forecasts? a) Hedging b) Capital budgeting c) Investing d) Earnings e) All of the above 39) Which currency forecasting technique involves the use of historical exchange rate data to predict future values? a) Technical b) Fundamental c) Market-based d) Mixed
