According to interest rate parity, if the interest rate is 1 ...

[Medesa]

According to interest rate parity, if the interest rate is 1 percent in the European Union and the euro is expected to appreciate 3 percent, the comparable interest rate in the United States will be
 
  A) 4 percent.
  B) 3 percent.
  C) 2 percent.
  D) 1 percent.

Question 2

The sum of currency and reserves of depository institutions is the ________.
 
  A) reserves of the Fed
  B) assets of the Fed
  C) monetary base
  D) vault cash

[allisonblackmore]

Answer to Question 1

A

Answer to Question 2

C

[Medesa]

TYSM

[frankwu0507]

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