Questions 13-20 are Multiple Choice and Short Answer questions (1 point each, 8 points in total). For MC questions only the final answer will be graded. For Short Answer questions, you must show your work! 13) Which of the following is an example of the American term exchange rate quotation that is, at the same time, an indirect quotation for Canadian residents? a) 1.33 CAD/E b) 0.93 USD/CAD c) 0.77 /CAD d) 1.07 CAD/USD e) Both (a) and (b) f) Both (c) and (d) g) Both (b) and (d) h) It is possible for a quote to be in European terms and, at the same time, to be a direct quote for the Canadian residents, but none of the above answers are correct. 1) It is impossible for a quote to be in European terms and to be a direct quote for Canadian residents at the same time. 1 2 14) If the Russian ruble depreciates relative to the currencies of Russian major trade partners, then the Russian trade balance (TB) will a) Increase in the short run and decrease in the long run b) Increase in both the short run and the long run c) Increase in the short run but does not change in the long run d) Decrease in the short run but does not change in the long run e) Decrease in the short run and increase in the long run f) Decrease in both the short run and the long run 15) Find /$ exchange rate if $/ exchange rate is 1.3$/ and / exchange rate is 1.75/ 16) Find the maximum amount of USD you can get for 500 RUB given the following exchange rate quotes from three different banks: TD: 1.08 - 1.11 USD/RUB BMO: 0.912-0.920 RUB/USD Scotia Bank: 0.910-0.915 RUB/USD 17) You would like to exchange 100 euros () for pounds (). What is the maximum amount of pounds you can get if you are faced with the following bid-ask exchange rates (please, round your answer to the nearest cent): /$: 1.22-1.23 $/: 1.37-1.39 /: 1.69-1.70 18) Compute the forward premium or discount for the dollar if 90-day forward rate is 0.85 $ and the spot rate is 0.83 /$. State whether your answer is a premium or discount. 19) Find / exchange rate if /$ exchange rate is 1.2/$ and $/ exchange rate is 1.25$/ 20) If TD posts 1.01$/ - 1.02 $/ bid-ask exchange rates, Scotiabank posts 0.7 /$-0.8 /$, and Barclays posts 0.67 / - 0.68 / exchange rates, then: a) Arbitrage is not possible b) If you start with dollars, the only way to make arbitrage is to exchange currencies in the following direction: $ $. c) If you start with dollars, the only way to make arbitrage is to exchange currencies in the following direction: $ $. d) If you start with dollars, you can make arbitrage by exchanging currencies in any of the following directions: $ $ or $ $