QUESTION 5 Select all that are true regarding investors and fx Currency forwards and futures can be used to mitigate fx risk for a foreign investment's "return trip" Currency swaps of two future dated exchanges can be used to make a foreign investment today Currency options can be used to hedge the risks of repatriating foreign investment returns. A properly hedged foreign investments will always have a higher total return than an uncovered foreign investment QUESTION 6 Select all that are true regarding currency (monetary) unions: Currency union members use fiscal policy to regulate the business cycle since sovereignty over monetary policy is lost to the union Currency unions require a common monetary policy in order to keep the exchange rate pegged between members Since each member of a currency union might be at a different point in the business cycle, the use of fiscal policy is not a concern to the union as a whole Currency unions form to facilitate factor mobility, intermediate good exchange, and trade between members