Given the U.S. price level P, the foreign country price level P, ...

[jasdeep_brar]

Given the U.S. price level P, the foreign country price level P, and the real exchange rate RER in foreign currency per U.S. dollar, the nominal exchange rate E would be given by
 
  A) E = RER  (P/P).
  B) E = RER  (P/P).
  C) E = (P/P) / RER.
  D) E = P  (RER/P).

Question 2

When the Federal Reserve lends reserves to depository institutions, it charges them interest. That interest rate is called the
 
  A) federal funds rate.
  B) loan rate.
  C) prime rate.
  D) discount rate.

[kxciann]

Answer to Question 1

B

Answer to Question 2

D