Question Completion Status: QUESTION 1 From the U.S. standpoint, a capital outflow will occur when a Japanese investor buys a portion of the U.S. government debt O True O False QUESTION 2 The spot and 30-day forward rates for the Dutch Guilder are $1.475 and $1.481, respectively. The Dutch Ouilder is said to be selling at a forward Oa. discount 4.9% b. premium of 4.9% Cdiscount of 5.2% d. premium of 5.24 QUESTION 3 The direct spot quote for the Canadian dollar is $.76 and the 180-day forward rate is $.74. The difference between the two rates is likely to mean that O a. inflation in the US. during the past o b. Cthe Canadian dollar's spot rate is 6 d. interest rates are rising faster in prices in Canada are expected to tise more rapidly than in the US year was lower than in Canada Canada than in the U.S expected to rise in terms of the U.S. dollar QUESTION 4 Click Save and Submit to save and submit. Click Save All Answers to save all ansuwers. e Question Completion Status: QUESTION 4 Let a flexible exchange rate system. Assume a current account deficit of $100 billion Then the capital account balance must be ob. Oaa deficit of $100 billicn 0.None of the anawers is correct a surplus of $100 billion Oa surplus of mething more than $100 million QUESTION 5 Purchasing Power Parity (PPP) theory states that Which of the answers is incorrect? the prices of standard commodaty baskets in two countries are not Oas the purchasing power of a currency sharply declines (due to hypeninflation) that carrency will depreciate against stable Othe exchanze rate beteen currencies of two countries should be equal to the ratio of the countries price levels related currencies QUESTION 6 A direct quote of 0.1256 Dir is equivalent to an indirect quote of C-Dkr 7.8654 O d.pkr 0.8654 Q aDkr 7.962 bDkr 11345 Click Save and Submit to sate and submit.Click Save All Ansuers to sae all answers, to search DELL M/203-644-1456