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Hi related to my MBA/ Multi international Corp finance, I need your help to get answers for the the attached questions set ( Questions set

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Hi related to my MBA/ Multi international Corp finance, I need your help to get answers for the the attached questions set ( Questions set 2), please

image text in transcribed The forward rate is the exchange rate used for immediate exchange of currencies. True False The correct answer is ____ is not a factor that affects the bid/ask spread. Order costs Inventory costs Volume All of the above factors affect the bid/ask spread The correct answer is The real interest rate adjusts the nominal interest rate for: exchange rate movements. income growth. inflation. government controls. none of the above The correct answer is When the "real" interest rate is relatively low in a given country, then the currency of that country is typically expected to be: weak, since the country's quoted interest rate would be high relative to the inflation rate. strong, since the country's quoted interest rate would be low relative to the inflation rate. strong, since the country's quoted interest rate would be high relative to the inflation rate. weak, since the country's quoted interest rate would be low relative to the inflation rate. If a currency's spot rate market is ____, its exchange rate is likely to be ____ to a single large purchase or sale transaction. liquid; highly sensitive illiquid; insensitive illiquid; highly sensitive none of the above. The correct answer is Assume the Canadian dollar is equal to $.88 and the Peruvian Sol is equal to $.35. The value of the Peruvian Sol in Canadian dollars is: about .3621 Canadian dollars. about .3977 Canadian dollars. about 2.36 Canadian dollars. about 2.51 Canadian dollars. The correct answer is Baylor Bank believes the New Zealand dollar will appreciate over the next five days from $.48 to $.50. The following annual interest rates apply: Currency: Dollars Lending Rate 7.10% Borrowing Rate 7.50%. Currency: New Zealand dollar (NZ$) Lending Rate 6.80% Borrowing Rate 7.25% Baylor Bank has the capacity to borrow either NZ$10 million or $5 million. If Baylor Bank's forecast is correct, what will its dollar profit be from speculation over the five-day period (assuming it does not use any of its existing consumer deposits to capitalize on its expectations)? $521,3 25. $500,5 20. $104,2 62. $413,4 19. $208,0 44. The correct answer is The value of the Australian dollar (A$) today is $0.73. Yesterday, the value of the Australian dollar was $0.69. The Australian dollar ____ by ____%. depreciated; 5.80 depreciated; 4.00 appreciated; 5.80 appreciated; 4.00 The correct answer is Any event that increases the U.S. demand for euros should result in a(n) ____ in the value of the euro with respect to ____, other things being equal. increase; U.S. dollar increase; nondollar currencies decrease; nondollar currencies decrease; U.S. dollar The correct answer is The exchange rates of smaller countries are very stable because the market for their currency is very liquid. True False The correct answer is

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