refer to the attached questions and answer them.

2. Abitibi Bank quotes JPY/EUR 155-165, and Bathurst Bank quotes EUR/JPY 0.0059- 0.0063. (a) Are these quotes identical? (b) If not, is there a possibility for shopping around or arbitrage? (c) If there is an arbitrage opportunity, how would you profit from it?2. Abitibi Bank quotes JPY/EUR 155-165, and Bathurst Bank quotes EUR/JPY (.0059- 0.0063. (a) Are these quotes identical? (b) If not, is there a possibility for shopping around or arbitrage? (c) If there is an arbitrage opportunity, how would you profit from it?3. What are the bid-ask quotes for: (a) czy/GBP? (b) DKK/GBP? (C) EUR/GBP? (d) NOK/GBP?5. The following data are taken from the balance of payments of Freedonia (currency FDK): Capital account 1995 1996 1997 1998 Portfolio investment (in billions of dollars) +2.9 -6.9 -5.4 -8.7 Is the following statement consistent with the data shown above? "After 1995, foreigners have issued FoK-denominated bonds in the Freedonian capital market in order to take advantage of the favorable interest rate differential with respect to the Us capital market."6. The following passage is from an article that appeared in a newspaper: "Last year, the US demand for capital to fund the federal deficit and to finance private investment in buildings and equipment exceeded net domestic savings by about usn 100 billion." What can we infer about the magnitude of the US current account deficit?8. You have been hired by the IMF to design a program to improve the current account balance. How should your program influence the following variables (increase/decrease): (a) Taxes (b) Government spending (c) Private savings9. The BOP of the US in 1982 and 1984 is given below. Is it correct to state, as it has often been done, that the deterioration of the current account was primarily financed by sales of US Treasury securities to foreigners?2. The data below is taken from the BOP of Switzerland. Based on this data, decide whether the following statement is true or false and explain your answer. "From 1979 to 1982, foreigners have been net issuers of SF-denominated bonds in the Swiss capital markets." 1979 1980 1981 1982 Portfolio investment (in billions of dollars) -11.8 -11.8 -11.9 -32.2