28. If interest rates suddenly increase in the U.S., interest rates in the Eurozone countries are likely to
    1. Increase
    2. Decrease
    3. Remain the same

29. If the Federal Reserve acts to strengthen the dollar, the following is likely to occur
    1. Demand for U.S exports will increase
    2. U.S. inflation rates will increase
    3. Both a. and b.
    4. Neither a. nor b.

30. If the spot rate of a currency is lower than its forward rate, the forward rate premium will be
    1. Lower than the spot rage
    2. Higher than the spot rate
    3. There will be no difference

31. When a set amount of a particular currency is to be exchanged on a specified date and at a specified exchange rate, that arrangement is called
    1. A put
    2. A call
    3. A currency futures contract
    4. A currency futures swap