Question
Please help me solve these questions. no need explanation. Quiz Question 1 (0.5 points) In the history of the United States, interest rates usually rise
Please help me solve these questions. no need explanation.
Quiz
Question 1(0.5 points)
In the history of the United States, interest rates usually rise during expansions.This is because during expansions, usually bond suppliers [increase] (increase or decrease) their supply of bonds [more] (more or less) than bond demanders [increase] (increase or decrease) their demand for bonds.
Question 1 options:
increase, more, decrease,
increase, less, increase,
increase, more, increase,
decrease, less, decrease,
decrease, more, decrease,
decrease, less, increase,
Question 2(0.5 points)
The federal government is expected to raise debts because of the bailout program to save the big banks.Upon the announcement of the proposed program by the fed and the treasury, other things remain unchanged, the interest rate isexpectedto, and therefore, the bondin the market now and the interest rate.
Question 2 options:
increase, demand, increases, decreases
increase, supply, decreases,increases
increase, demand, decreases, increases
increase, supply, decreases, decreases
decrease, demand, increases, decreases
decrease, supply, decreases, increases
decrease, demand, increases, increases
decrease, supply, decreases, decreases
Question 3(0.5 points)
If the exchange rate at time t is 1/$. You invest $1 in an euro asset at t, which has an interest of 8%. If the exchange rate at time t+1 is 1.02/$, then your rate of return in terms of is%.
Question 3 options:
Question 4(0.8 points)
If the interest rate on euro-denominated assets is 13 percent and it is 15 percent on peso-denominated assets, and if the euro is expected to appreciate at a 4 percent rate against peso, for Manuel the Mexican the expected rate of return on euro-denominated assets is%.
Question 4 options:
Question 5(0.8 points)
With a 10 percent interest rate on dollar deposits, and an expected appreciation of 7 percent over the coming year, the expected return on dollar deposits in terms of the foreign currency is%.
Question 5 options:
Question 6(0.8 points)
Question 6 options:
If the exchange rate at time t is Et= 1/$.You invest $1 in an euro asset at t, which has an interest of 8%.If Et+1= 1.02/$, then your rate of return in terms of $ is
%, and your rate of return in terms of is
%.
Question 7(0.8 points)
If the interest rate is 7 percent on euro-denominated assets and 5 percent on dollar-denominated assets, and if the dollar is expected to appreciate at a 4 percent rate against euro, for Francois the Frenchman the expected rate of return on dollar-denominated assets is%.
Question 7 options:
Question 8(0.8 points)
According to the interest parity condition, if the U.S. interest rate is 2 percent and the Japanese interest rate is 4%, and the current exchange rate is 100 yens per dollar.Then the market expects the future exchange rate to be ________ yens per dollar.
Question 8 options:
Question 9(0.8 points)
According to the interest parity condition, if the domestic interest rate is 12 percent and the foreign currency is expected to depreciate by 2% against domestic currency.Then the foreign asset must offer an interest rate of ________ %.
Question 9 options:
Question 10(0.8 points)
With a 10 percent interest rate on dollar deposits, a 7 percent interest rate on euro deposits, and an expected dollar appreciation of 7 percent over the coming year, the expected return on dollar deposits in terms of the dollar is ___________%
Question 10 options:
Question 11(0.8 points)
If the interest rate on euro-denominated assets is 13 percent and it is 15 percent on peso-denominated assets, and if the euro is expected to appreciate at a 4 percent rate against peso, for Francois the Frenchman the expected rate of return on peso-denominated assets is __________ %.
Question 11 options:
Question 12(0.8 points)
According to the interest parity condition, if the domestic interest rate is 12 percent and the foreign interest rate is 10 percent, then the expected appreciation rate of the foreign currency against the domestic currency must bepercent (put a negative sign if it is expected to depreciate).
Question 12 options:
Question 13(0.5 points)
If the 2005 inflation rate in Canada is 4 percent, and the inflation rate in Mexico is 2 percent, then the theory of purchasing power parity predicts that, during 2005, the value of the Canadian dollar in terms of Mexican pesos will change by% (put a negative sign if it is a fall, no negative sign if it is a rise).
Question 13 options:
Question 14(0.5 points)
According to the law of one price, if the price of Colombian coffee is 100 Colombian pesos per pound and the price of Brazilian coffee is 4 Brazilian reals per pound, then the exchange rate between the Colombian peso and the Brazilian reals is____________ pesos per real.
Question 14 options:
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