NOTE: Please EXPLAIN your choice of the multiple-choice questions.

11- When SFR / $ = 1.0814 / 1.0865 and / $ = 1.1893 / 1.1905, what is the value of / SFR parity?

A) 1.0814/05

B) 1.1749/35

C) 1.0946/09

D) 0.9093/26

E) 1.2874/22

12- Suppose the pound sterling is bid at $1.3907 in New York and the euro is offered at $1.1893 in Frankfurt. At the same time, London banks are offering pounds sterling at 1.1524. A trader has $1,000,000. How much profit would the trader make from triangular arbitrage if he started trading in Frankfurt by selling dollars for euros?

A) $ 152,400

B) $ 22,665.65

C) $ 0

D) $ 14,702.63

E) $ 9,169.25

13 - When 1$ = 8.1543 TRY and 1 = 9.6977 TRY, what is the value of $/ parity?

A) 1.5213

B) 1

C) 0.5000

D) 0.8408

E) 1.1893

14 - Which of the following is/are true?

I. If over-all balance< 0; that is, if the country has a net foreign payment deficit, the CB meets the demand by selling its reserve assets.

II. If over-all balance> 0 ; that is, if the country has a net foreign payment surplus, the MB will increase the foreign exchange reserves by attracting excess foreign currency supply.

III. If the transaction records are made completely and without errors (NEO = 0), the current account balance, capital and financial accounts balance and reserve assets balance sum must be zero: Current Account Balance + Capital Account Balance + Net Errors and Omissions-Finnacial Accounting Balance - Reserve Assets = 0

A) Il and III

B) I, Il and Ill

C) I and II

D) II

E) I and Ill

15 - Which of the following enters into the balance of payments recording with a negative sign?

A) Expenditures of a tourist in the home country

B) Financial aid obtained from an international institution

C) Transferred profit of a company to abroad

D) Export of a good

E) Treasury bills sold to a foreigner