Blog

Assume that interest rate parity holds. The Mexican interest rate is 50%, and the U.S. interest rate is 8%. Subsequently, the U.S. interest rate decreases to 7%. According to interest rate parity, the peso’s forward ____ will ____.

As foreign exchange activity has grown, a given degree of central bank intervention has become:

Assume the spot rate of the Swiss franc is $.62 and the one-year forward rate is $.65. The forward rate exhibits a ____ of ____.

Institutional discrimination consists of the day-to-day practices of organizations and institutions that have a harmful effect on members of subordinate groups

Technology enables more consistent prices among banks and reduces the likelihood of significant discrepancies in foreign exchange quotations among locations.

The euro has not been adopted by:

Currency futures can be used by MNCs to hedge payables. That is, an MNC would ____ futures to hedge a foreign payable position. Also, currency futures can be used for speculation. For example, a speculator expecting a currency to depreciate would ____ futures.

A strong dollar places ____ pressure on U.S. inflation, which in turn places ____ pressure on U.S. interest rates, which in turn place ____ pressure on U.S. bond prices.

Footing size and material, foundation wall thickness, and the sizes of floor framing materials are the kind of information found on typical __________ section drawings.

Which of the following countries have not adopted the euro?