You pay for a 750 euro dinner in Paris with your credit card. When you get home you see a charge of $1000 on your credit card bill. What was the spot exchange rate for this purchase? 32. 33. The next week you return to the same restaurant and have the same meal but this charge on your credit card appears as $1100. This suggests the value of the Euro? UNDER EXPECTATION THEORY OF INTEREST RATES. If this year a 1year treasury has a return of 2% and a 2 year treasury has a return of 2% What do people expect 1year returns to be a year from now? 34. If MB = 1000. The reserve requirement ratio (r) is 10%. e = 5% and currency ratio = 5%. 35. What is total Currency? 36. What are Total reserves? 37. What are Total Deposits