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Chapter 10 Formulas and Definitions All symbols are as in the textbook and lectures. Unless otherwise stated, you can assume that two countries have purchasing power parity (PPP) and interest rate parity. Exchange rate when there is PPP: R = P / P*. In this formula, P and P* can be regarded as prices of individual goods or of consumption baskets. Approximate relationship when there is interest rate parity: i – i* = (F – R)/R. For the purpose of this test, take this equation to be exact, not approximate. You can also use the equivalent equation i – i* = F/R – 1. For this formula to work, i and i* must be fractional, not percentages. So, a domestic interest rate of 1.34% is written i=1.0134, a foreign interest rate of 22.5% is written i*=1.225. Note that you may be asked to enter answers as percentages, though. ***************************** Suppose that R, the spot exchange rate of the U.S. dollar for the Hong Kong dollar, is 0.125 US $ / HK $, while F, the forward exchange rate, is 0.135 US $ / HK $. If the interest rate in the U.S. is 11.5% what is the interest rate in Hong Kong? Enter your answer as a percentage, not as a fractional number. So, if your result is 1.0134, you must enter 1.34 (since this is 1.34%, but don’t enter the % symbol). Only exact answer is accepted, so double check your calculations.

Chapter 10 Formulas and Definitions All symbols are as in the textbook and lectures. Unless otherwise stated, you can assume that two countries have purchasing power parity (PPP) and interest rate parity. Exchange rate when there is PPP: R = P / P*. In this formula, P and P* can be regarded as prices of individual goods or of consumption baskets. Approximate relationship when there is interest rate parity: i – i* = (F – R)/R. For the purpose of this test, take this equation to be exact, not approximate. You can also use the equivalent equation i – i* = F/R – 1. For this formula to work, i and i* must be fractional, not percentages. So, a domestic interest rate of 1.34% is written i=1.0134, a foreign interest rate of 22.5% is written i*=1.225. Note that you may be asked to enter answers as percentages, though. ***************************** Information for questions 13-15 The figure represents possible supply and demand curves for the Brazilian Real (symbol R). The vertical axis is in the usual unit of U.S. dollars per Real. Note that one vertical grid spacing is 1 cent. Initially the Real is trading with supply curve S0 and demand curve D0, therefore the initial exchange rate is 0.13 $ / R. For numeric questions, only the exact answer is accepted, so double check that you are reading the graph correctly. All graphical answers can be made exact with the assumption: if two curves seem to cross where two grid lines also cross, then they do. At a later time, suppose that supply is S2 and demand is D2. An American speculator purchases 10,000 Real as an investment. How much does he pay for this, in dollars? Only exact answer is accepted, so double check that you are reading the graph correctly.

What kind of style is used when handing a scalpel to the surgeon? 

Who should be notified when the surgical counts are incorrect after multiple counts? 

What three things are needed for a fire to start in the operating room?

The proper way to retractor tissue is to toe-in the retractor. 

What consent is needed before patient receives any medical care?   

Random assignment is used to control order effects in a within-subjects experiment.

In an experiment examining the effects of background noise on people’s ability to understand a verbal message, one group of participants is given a comprehension quiz after listening to a passage being read to them with no background noise. A week later, the same group of participants is given a comprehension quiz after listening to a passage being read to them with 60 decibels of conversation as background noise. This is an example of a ____ design.