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 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.Question 20 If international exchange rate statistics show that the real effective exchange rate index for country A vs country B increased from 90 last year to 98 currently and is expected to rise still further in the coming year, then, other things being equal, country A_ country B think this is good news and country A country B think this is bad news. Select one: A. importers to; exporters from O B. importers from; exporters to O C. exporters from; importers to O D. exporters to; importers from Question 21 Assume the current U.S. dollar-Euro spot rate is 0.8200Eur/$. If the current nominal one-year interest rate in the U.S. is 0.5% and the comparable rate in Germany is 0.1%, what is the approximate forward exchange rate for 360 days? Select one: A. 0.8208Eur/$ O B. 0.8241 Eur/$ O C. 0.8232Eur/$ D. 0.8167Eur/$