81-According to the ____ theory, the currency with the _____ expected inflation rate should ____ relative to the currency with the _____ expected rate of inflation.

Select one:

a. Unbiased forward rate, lower, depreciate, higher

b. International Fisher Effect, higher, depreciate, lower

c. Unbiased forward rate, higher, depreciate, lower

d. Purchasing Power Parity, higher, depreciate, lower

82-According to the __________ theory, the _________ in a currency market are ___________ indicators of the future ________ rates.

Select one:

a. Unbiased forward rate, spot rates, unbiased, forward

b. Interest rate parity, spot rates, unbiased, forward

c. Unbiased forward rate, spot rates, biased, forward

d. Unbiased forward rate, forward rates, unbiased, spot

73-If the future inflation rates in the U.S. and France in January 1991 were expected to be 4% and 7% per annum, respectively, then, according to purchasing power parity, the future euro to U.S. dollar spot rate in 3 years ___.

Select one:

a. would remain unchanged

b. would appreciate against the U.S. dollar

c. would be grounds to apply for aid from the International Monetary Fund

d. would depreciate against the U.S. dollar

74-According to the International Fisher Effect, if Currency A has a home country that is expected to have a ________________ future interest rate than the country of Currency B's expected interest rate, then Currency A will be expected to ________ against Currency B.

Select one:

a. higher, appreciate

b. lower, depreciate

c. higher, depreciate

d. lower, remain unchanged