1. If one U.S. dollar buys 1.64 Canadian dollars how many U.S. dollars can you purchase for one Canadian dollar?0.370.611.001.643.282. If the inflation rate in the United States is greater than the inflation rate in Britain other things held constant the British pound willAppreciate against the U.S. dollar.Depreciate against the U.S. dollar.Remain unchanged against the U.S. dollar.Appreciate against other major currencies.Appreciate against the dollar and other major currencies.3. Suppose one British pound can purchase 1.82 U.S. dollars today in the foreign exchange market and currency forecasters predict that the U.S. dollar will depreciate by 12.0% against the pound over the next 30 days. How many dollars will a pound buy in 30 days?1.121.631.822.043.64 4. Suppose in the spot market 1 U.S. dollar equals 1.60 Canadian dollars. 6-month Canadian securities have an annualized return of 6% (and thus a 6-month periodic return of 3%). 6-month U.S. securities have an annualized return of 6.5% and a periodic return of 3.25%. If interest rate parity holds what is the U.S. dollar-Canadian dollar exchange rate in the 180-day forward market?1 U.S. dollar = 0.6235 Canadian dollars1 U.S. dollar = 0.6265 Canadian dollars1 U.S. dollar = 1.0000 Canadian dollars1 U.S. dollar = 1.5961 Canadian dollars1 U.S. dollar = 1.6039 Canadian dollars

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