Please answer each question with True or False and an explanation in around three sentences.

1. The CanadaUS exchange rate can be both statistically explained contemporaneously and predicted in advance using oil prices. 2. Departures from uncovered interest parity (for example in the Yen-USD market) mean that there are riskless prots from the carry trade and that the forward rate is a biased predictor of the future spot exchange rate. 3. The current value of the real exchange rate can help predict the rate of real depreciation and the rate of nominal depreciation. 4. There are several ways for emerging market economies to avoid the negative eects of loose US monetary policy. 5. For most countries the costs of a currency union outweigh the benets. 6. The problem of global imbalances continues to worsen, partly due to China's exchange rate policy