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Author Question: The currencies of countries enjoying BOP trade surpluses or low inflation rates are more likely to ... (Read 83 times)

cagreen833

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on: Jul 7, 2018
The currencies of countries enjoying BOP trade surpluses or low inflation rates are more likely to sell at a ________.
 
  A) spot discount
  B) spot premium
  C) forward discount
  D) forward premium

Question 2

The International Fisher Effect implies that ________.
 
  A) the country with the higher interest rate should have lower inflation
  B) the currency of the country with the lower interest rate will strengthen in the future
  C) the currency of the country with the higher interest rate will strengthen in the future
  D) interest rates and inflation are not linked at all


johnharpe

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Reply #1 on: Jul 7, 2018
Answer to Question 1

D

Answer to Question 2

B


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