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Author Question: If the bank is selling euros for 0.74, then what is the implied euro price of the dollar? A) 1.35 ... (Read 26 times)

stock

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on: Jun 30, 2018
If the bank is selling euros for 0.74, then what is the implied euro price of the dollar?
 
  A) 1.35
  B) 1.74
  C) 2.48
  D) None of these values are correct.

Question 2

The expected rate of change in the nominal dollar/euro exchange rate is best described as
 
  A) the expected rate of change in the real dollar/euro exchange rate minus the U.S.-Europe expected inflation difference.
  B) the expected rate of change in the real dollar/euro exchange rate plus the U.S.-Europe real interest rate difference.
  C) the expected rate of change in the real dollar/euro exchange rate plus the U.S.-Europe expected inflation difference.
  D) the expected rate of change in the real dollar/euro exchange rate minus the U.S.-Europe real interest rate difference.
  E) the expected rate of change in the real dollar/euro exchange rate plus the European expected inflation.


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hugthug12

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Reply #1 on: Jun 30, 2018
Answer to Question 1

A

Answer to Question 2

C


stock

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Reply 2 on: Jun 30, 2018
Thanks for the timely response, appreciate it

ghepp

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Reply 3 on: Yesterday
Wow, this really help

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