Please answer 2 questions:

25. The Mexican peso/ US$ spot exchange rate in December 1997 and December 1998 were 6.3 and 7.0, respectively. During 1998 inflation rates in Mexico and US were at 23% and 5%, respectively. What happened to real value of the peso during 1998?

23. Using the table below,

American Term European Team

Bank Quatatuins Bid Ask Bid Ask

British pounds $1.9700 $1.9715 0.5072 0.5076

Euros $1.474 $1.485 0.6734 0.6784

What are the bid and ask prices of pounds in terms of euros, respectively?