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The interest rate on euros is 8%. The interest rate in the U.S. is 5%. The euro’s forward rate should exhibit a premium of about 3%.

President _________ declared war on England, but the ___________resisted the president.

The value of the Australian dollar (A$) today is $.73.  Yesterday, the value of the Australian dollar was $0.69.  The Australian dollar __________ by _________%.

The longer the time to the expiration date for a currency, the ____ will be the premium of a call option, and the ____ will be the premium of a put option, other things equal.

If a speculator expects that the Fed will intervene by exchanging dollars for Japanese yen, she would most likely ____ to capitalize on this intervention.

Which of the following would likely have the greatest direct influence on a country’s capital/financial account?

To weaken the dollar using sterilized intervention, the Fed will ____ U.S. dollars and simultaneously ____ Treasury securities.

All other things held constant, a large increase in the U.S. income level is normally expected to cause:

At Valley Forge, Washington’s army

During the Napoleonic Wars between England and France, the USA