Hi,

Could you please help me answer the 4 questions below? I need the correct answer, and if possible, a brief explanation. Thanks very much :)

Question 16 According to the International Fisher Effect, if an investor purchases a fifteen-year U.S. bond that has an annual interest rate of 1% rather than a comparable German government bond that has an annual interest rate of 0.5%, then the investor must be expecting the to _ at a rate of at least 0.5% per year over the next 15 years. Select one: A. U.S. dollar; appreciate B. U.S. dollar; depreciate C. Euro; depreciate D. Euro; devalue Question 17 Key factors for exchange rate determination are generally thought to be driven by the in the short run, but that the determines long run exchange rates. Select one: A. None of the above. B. combination of asset markets, interest rates and expectations / Law of one price C. Fisher effect / Law of one price D. Law of one price / Fisher effectQuestion 18 Which of the following is an assumption of market efficiency Select one: O A. At least all relevant publicly available information is quickly reflected in both spot and forward exchange markets. O B. All of the above are true. O C. Instruments denominated in other currencies are not always perfect substitutes for one another. O D. Transaction costs are usually low but sometimes can be significant. Question 19 Absolute Purchasing Power Parity holds when: Select one: O A. a basket of goods is worth the same when converted from the other currency. B. every item in a basket of goods is worth the same when converted from the other currency. O C. within a single currency (e.g. price of a product in Birmingham is the same as the price of the same product in Manchester) O D. most items in a basket of goods are worth the same when converted from the other currency