Use the information below to answer the questions that follow.

1

	U.S. $ EQUIVALENT	CURRENCY PER U.S. $
U.K. Pound ()	1.5542	.6434
Canada dollar	1.0251	.9755

a. Which would you rather have, $100 or 100? (Click to select)100 Pounds100 Dollars b. Which would you rather have, $100 Canadian or 100? (Click to select)100 Pounds100 Canadian Dollars c. What is the cross-rate for Canadian dollars in terms of British pounds? (Do not include the Canadian dollar sign (C$). Do not round intermediate calculations and round your answer to 4 decimal places, e.g., 32.1616.) Cross-rate C$ / What is the cross-rate for British pounds in terms of Canadian dollars? (Do not include the pound sign (). Do not round intermediate calculations and round your answer to 4 decimal places, e.g., 32.1616.) Cross-rate / C$

2

Suppose the current exchange rate for the Russian ruble is RUB 37.74. The expected exchange rate in three years is RUB 34.54. What is the difference in the annual inflation rates for the United States and Russia over this period? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Difference in the annual inflation rate %