Question: Essay qes plz 121 of a currency 133 What is more appropriate to use wiven attempting to hand intormation about the purchasing power A) the

 Essay qes plz 121 of a currency 133 What is more

Essay qes plz

121 of a currency 133 What is more appropriate to use wiven attempting to hand intormation about the purchasing power A) the spot exchange rate 1) the price indexes C) the forward rate D) the price levels Is the replacement (le) of a foreign currency with US dollars A) Pegged exchange rate system B) Managed float exchange rate system Freely floating exchange rate system D) Dollarization exchange rate system ----------- In which their home currency's value is same to a foreign currency or to come unul A) freely floating B) managed float C) Fixed D) pegged 14) of account 15) 15) --------- exchange rates are either held constant or allowed to fluctunte() only within very narrow A) managed float exchange rate system B) Freely exchange rate system C) pegged exchange rate system D) fixed exchange rate system boundaries ESSAY. Write your answer in the space provided or on a separate sheet of paper. 16) Suppose the S-year interest rate on a dollar-denominated pure discount bond is 4.5%, whereas in France, the euro interest rate is 7.5% on a similar pure discount bond denominated in euros. If the current spot rate is $1.08/, what is the value of the forward exchange rate that prevents covered interest arbitrage

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