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Need quick and urgent answers ASAP True or False? The pure expectations theory can explain an upward-sloping yield curve Select one: a. False b. True

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True or False? The pure expectations theory can explain an upward-sloping yield curve Select one: a. False b. True What is the approximate one year forward rate of interest starting in one year's time if the one year spot interest rate is 12% and the two year spot interest rate is 11% ? a. 13% b. 9% c. 12% d. 10% e. 11% One London financial institution tells you that the exchange rate between euro and UK pound () is 0.9202, another institution tells you that the exchange rate between these two currencies is 1.0867. Is this most likely to be: a. Because the two institutions are using different conventions for quoting this exchange rate b. A common arbitrage opportunity c. because one institution is in the City of London, whilst the Other is in the docklands, on the other side of the Greenwich meridian. d. because of the large bid/ask spreads that are typical in the global FX markets even when one bank trades with another e. Impossible

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