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Author Question: If money were free from all controls when transferred internationally, the real rate of interest ... (Read 127 times)

jake

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on: Jul 7, 2018
If money were free from all controls when transferred internationally, the real rate of interest would ________.
 
  A) be the same in all countries
  B) be the same as the inflation rate
  C) create arbitrage opportunities across countries
  D) create arbitrage opportunities in developed countries

Question 2

Which of the following represents the Fisher effect?
 
  A) Cross Rate = Real Interest Rate + Nominal Interest Rate
  B) Real Interest Rate = Nominal Interest Rate + Spot Rate
  C) Nominal Interest Rate = Real Interest Rate + Inflation Rate
  D) Real Interest Rate = Nominal Interest Rate + Unemployment Rate


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Ksanderson1296

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Reply #1 on: Jul 7, 2018
Answer to Question 1

A

Answer to Question 2

C


jake

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Reply 2 on: Jul 7, 2018
YES! Correct, THANKS for helping me on my review

bassamabas

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Reply 3 on: Yesterday
Wow, this really help

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