banks. Part 3: Answer the question and give the explanation (3 points in total, each weight 1.5 points). Question 4: (CLO 1.3, 2.3) Everything else held constant, would an increase in volatility of stock prices have any impact on the demand for rare coins? Why or why not? Questions 5: (CLO 1.1, 3.4) Explain the law of one price and the theory of purchasing power parity. Why doesn't purchasing power parity explain all exchange rate movements? What factors determine long-run exchange rates