Question: Use the data in table to answer the following questions: Country Currency Exchange Rate Europe Eurozone Euro*Footnote asterisk (EUR) 1.1595 Czech Republic Koruna (CZK) 22.8420
Use the data in table to answer the following questions:
| Country | Currency | Exchange Rate |
|---|---|---|
| Europe | ||
| Eurozone | Euro*Footnote asterisk (EUR) | 1.1595 |
| Czech Republic | Koruna (CZK) | 22.8420 |
| Russia | Ruble (RUB) | 70.7987 |
| Sweden | Krona (SEK) | 8.8655 |
| Switzerland | Franc (CHF) | 0.9298 |
| United Kingdom | Pound*Footnote asterisk (GBP) | 1.2714 |
| Americas | ||
| Brazil | Real (BRL) | 5.4161 |
| Canada | Dollar (CAD) | 1.3416 |
| Mexico | New peso (MXN) | 22.2949 |
| Pacific/Middle East/Africa | ||
| Australia | Dollar (AUD) | 0.7151 |
| China | Yuan (CNY) | 6.9955 |
| India | Rupee (INR) | 74.6035 |
| Japan | Yen (JPY or ) | 107.19 |
| New Zealand | Dollar*Footnote asterisk (NZD) | 0.6670 |
| South Africa | Rand (ZAR) | 16.3958 |
| South Korea | Won (KRW) | 1,196.03 |
| Turkey | Lira (TRY) | 6.8523 |
How many Brazilian reals do you get for your dollar?
Note: Round your answer to 4 decimal places.
If the 1-year forward rate on the real is USD/BRL = 5.552, is the real at a forward discount or premium?
If the 1-year interest rate on dollars is 1.0%, what will be the interest rate on the real?
Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.
According to the expectations theory, what is the expected spot rate for the real in 1 years time?
Note: Round your answer to 3 decimal places.
According to purchasing power parity, what is the difference in the expected rate of price inflation in the United States and the rate in Brazil?
Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.
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