Author Question: According to interest rate parity, if the interest rate is 1 percent in the European Union and the ... (Read 90 times)

Medesa · **on:** Jun 29, 2018

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