Problem 4 Is it possible for a country to have a current account deficit at the same time it has a surplus in its balance of payments? Explain your answer. Interpret the possible implications for official international reserve flows. Problem 5 Record the quotation of Japanese yen in European terms with the indirect quotation of yen to American dollar in Japan being 0.00945. Problem 6 Define the exchange rate between British pound and American dollar (quotation in American terms) with the quotation of Euro in American terms being 1.2711 and indirect quotation of pound to Euro in Eurozone being 0.68951. Problem 7 Currency spread in a direct quotation between Swiss franc and Euro in Switzerland equals 0.077%. The bid rate is 1.5615. Define the bid and ask rates between these currencies for direct quotation in Eurozone. Problem 8 Given the following quotations define the exchange rate between Canadian dollar and Euro under direct quotation in Canada. cS/S = 1.3115-1.3126 /$ = 0.78653-0.78691 Problem 9 The quotation in the USAis: 5 / = 1.8443 1.8539. A UK resident is undertaking exchange rate arbitrage and faces the following quotation in her domestic market: /5 = 0.54238 0.54520. Is there a possibility of getting the risk-free profit in this case? If so explain how using the step-by-step approach. Problem 10 Which currency is quoted at a discount? (/S)pot = 105.82 ( / S)fomard = 109.17