I need to find the right answers to this multi-choice questions

1. All of the following help explain why PPP does not hold well in the short run, except:

a) tariffs

b) arbitrage

c) sticky prices

d) nontraded goods

2. Which of the following helps explain failures in uncovered interest rate parity?

a) Expectations of a currency depreciation

b) Exogenous shocks to money demand

c) risk of government default

d) all of the above

3. The monetary approach to exchange rates requires which of the following theories to hold:

a) uncovered interest rate parity

b) purchasing power parity

c) real interest rate parity

d) exchange rate overshooting

4. A tariff can _______ raise a country's welfare

a) never.

b) sometimes.

c) always.

d) none of the above.

5. A Currency board

a) is responsible for maintaining a fixed exchange rate.

b) has no monetary policy independence.

c) includes several countries

d) all of the above

6.According to the monetary approach to exchange rates, if Zimbabwe has a money supply growth rate of 5% and output growth rate of 2%, while Botswana has money supply growth rate of 3% and output growth of 4% , then the exchange rate (Zimbabwe currency per Botswanan currency) is

a) rising 3%.

b) rising 2%.

c) falling 2%.

d) none of the above.

7. In the case of the question immediately above, what should be the inflation rate of Botwana

a) 4%.

b) 3%.

c) 1%.

d) -1%.

8. Countries with good institutions have:

A) higher per capita income.

B) greater income volatility.

C) higher per capita income and greater income volatility.

D)lower per capita income.

9. Absolute purchasing power parity implies that:

A) the price of a basket of goods is cheaper in one country than in another.

B) the price of a basket of goods is more expensive in one country than in another.

C) the price of a basket of goods is the same in the two countries.

D) the exchange rate is artificially held constant.

10. What is the eurozone?

A) a common European defense system supplemented by radar and strategic monitoring systems

B) a trade agreement among the nations of Europe not to impose tariffs on each other

C) a group of European nations that have adopted a common currency.

D) regions of the world that allow traders to make bank deposits in euros

11. Which of the following would suggest Serbia is a good candidate to join the European monetary union, according to the standard optimal currency area theory?

A) Serbia trades more with Russia than with Western Europe.

B) Serbia has a strong economy at present while Western Europe is in recession.

C) There is low labor mobility between Serbia and Western Europe.

D) None of the above.

12. Consider situation in the foreign exchange market on October 8th 2019. The triangular arbitrage condition holds. USD/EUR is 1,10 i.e. by one euro you get 1,10 US dollar. NOK/EUR is 10,02 i.e. by one euro you get 10,02 NOK. What is the value of USD/NOK i.e. how many US dollars will you get by one Norwegian krona?

a) 0,09

b) 0,10

c) 0,11

d) 0,12

13. Assume the uncovered interest rate parity holds. In the euro area the one year interest rate is 0% and in Norway 1,5%=0,015. NOK/EUR rate is 10,02 ant thus EUR/NOK rate is 0,0998. What is the expected EUR/NOK rate? Is the euro expected to appreciate or depreciate?

a) 0,0998. We expect no change in the exchange rate

b) 0,1009. We expect the euro to depreciate

c) 0,0905. We expect the euro to appreciate

d) Cannot calculate using the given information

14. Assume the purchasing power parity holds. Inflation in the euro area is 3% and global inflation outside the euro area is 1%. What is the expected appreciation or depreciation of the euro in the foreign exchange market?

a) the euro is expected to depreciate by 4%

b) the euro is expected to appreciate by 4%

c) the euro is expected to depreciate by 2%

d) the euro is expected to appreciate by 2%

15. Consider the real exchange rate of Finland. Inflation in Finland is 1% and global inflation (countries relevant from the point of view of Finland's foreign trade) is 2%. The external value of the euro is exogenous from the point of view of Finland and it appreciates in the foreign exchange market by 3%. How much does the real exchange rate of Finland change? Does it appreciate or depreciate? Is this good or bad for Finnish exports?

a) the real exchange rate of Finland depreciates by 4%. This is good for Finnish exports

b) the real exchange rate of Finland depreciates by 4%. This is bad for Finnish exports

c) the real exchange rate of Finland appreciates by 4%. This is good for Finnish exports

d) the real exchange rate of Finland appreciates by 4%. This is bad for Finnish exports

16. Let us consider the monetary model of exchange rate determination as explained during the lectures. Which one of the following statements is true:

a) the monetary model holds both in the short and long run. Thus, it is always true

b) the monetary model describes behavior and pressure in the foreign exchange markets in the long run or medium term

c) money markets are not in equilibrium

d) the monetary model is useful in predicting developments in growth