5) The nominal exchange rate is A) the difference in the interest rates between two countries B) the price of one country's currency in terms of a different currency C) the rate at which goods and services are exchanged D) the price of a bond if sold to an investor outside the country wealth? A) Checking account B) Gold and other real assets C) Common stocks D) Corporate bonds 7) A portfolio is: A) the measure of risk with holding different risky assets B) a collection of assets C) money invested in fixed income securities with different default risks D) all common stocks available to investors If you deposit $500 in a savings account at an annual rate of 5%, how much will you have in the account at the end of five years? Assume annual payment of interest and no withdrawals. 8) A) $638 B) $721 C) $392 D) $550 9) Which of the following will lead to a higher interest rate on a loan? A) Lower opportunity cost B) Increased bank reserves C) Lower inflation D) Higher risk of default 10) In the bond market, a seller or issuer is considered to be:_ A) the lender or the borrower depending on the use of the funds B) the lender C) the borrower D) the lender or the borrower depending on the rating agency's report