Author Question: A(n) ________ opportunity helps in buying a product in one country and selling it in another country ... (Read 77 times)

Sufayan.ah · **on:** Jul 7, 2018

A(n) ________ opportunity helps in buying a product in one country and selling it in another country where it has a higher value.

A) barter
B) buyback
C) countertrade
D) arbitrage

Question 2

Which of the following talks about the relative ability of two countries' currencies to buy the same basket of goods in those two countries?

A) the Fisher effect
B) the law of one price
C) purchasing power parity
D) cross rates

Question 3

A government buys its own securities on the open market when the ________.

A) inflation rate in the country is high
B) inflation rate in the country is low
C) interest rates in the country are high
D) interest rates in the country are low

Question 4

The principle that nominal interest rate is the sum of the real interest rate and the expected rate of inflation over a specific period of time is called ________.

A) the law of one price
B) purchasing power parity
C) the comparative advantage theory
D) the Fisher effect

Anton · **Reply #1 on:** Jul 7, 2018

Answer to Question 1

D

Answer to Question 2

Posted another one can you check that one too? Thanks.

Answer to Question 3

Right on time. Thanks a bunch.

Answer to Question 4

Great help.