题目内容

Other things equal, an expected depreciation in the euro will lead to:

A. an inflow of capital to Europe.
B. an increase in official exchange market intervention by the euro area monetary authorities.
C. a lowering of exports of European goods and services.
D. a decrease in the demand for euro-denominated financial assets.

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If the domestic interest rate decreases, with the foreign interest rate and the expected future spot rate remaining unchanged, the value of the domestic currency vis-à-vis the foreign currency is expected to:

A. increase.
B. decrease.
C. remain unchanged.
D. converge to its PPP value.

Which of the following statements is TURE?

A. If the domestic interest rate rises, there will be international financial repositioning toward domestic-currency assets, thereby causing the domestic currency to appreciate.
B. If the expected future spot exchange rate value of the foreign currency decreases, there will be international financial repositioning toward foreign-currency assets, thereby causing the domestic currency to depreciate.
C. If foreign interest rates increase, the domestic interest rate remaining unchanged, there will be international financial repositioning toward domestic-currency assets and the domestic currency will appreciate.
D. If the expected future spot dollar per euro exchange rate increases, there will be international financial repositioning toward the dollar-denominated assets thereby causing the euro to depreciate.

Everything else remaining unchanged, an increase in interest rates in the United States is most likely to result in:

A. depreciation of the dollar.
B. outflows of capital from the United States.
C. capital inflows into the United States.
D. a decrease in the demand for dollar-denominated financial assets.

Which of the following is NOT linked together by uncovered interest parity?

A. The domestic interest rate
B. The foreign interest rate
C. The current spot exchange rate
D. The current forward exchange rate

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