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Author Question: If the 12-month interest rates for the United States and the United Kingdom are 6 and equal, and 1 = ... (Read 115 times)

maegan_martin

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on: Jun 30, 2018
If the 12-month interest rates for the United States and the United Kingdom are 6 and equal, and 1 = 2 in the spot market, then what do you expect the 12-month forward rate to be?
 
  A) 2.10
  B) 1.90
  C) 2.00
  D) 2.11

Question 2

If Australia has more land per worker, and Belgium has more capital per worker,then if trade began between these two countries
 
  A) the real income of landowners in Belgium would decline.
  B) the real income of capital owners in Australia would increase.
  C) the real income of labor in Australia would decline.
  D) the real income of labor in Belgium would decline.
  E) the real income of labor in both countries would decline.


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mmpiza

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

C

Answer to Question 2

A


maegan_martin

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Reply #2 on: Jun 30, 2018
Thank you :)


mmpiza

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Reply #3 on: Jun 30, 2018
Happy to help you


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