Which term is defined as having international operations in a world where relative currency values change? Question 4 options:

a) Political risk

b) Relative purchasing power parity

c) Exchange rate risk

d) Absolute purchasing power parity

Suppose you could buy 1,115 South Korean won or 100 Pakistani rupees last year for $1. Today, $1 will buy you 1,113 won or 102 rupees. Which one of the following occurred over the past year?

Question 8 options:

a)	The rupee depreciated against the dollar.

b)	The won depreciated against the dollar.

c)	The dollar appreciated against both the won and the rupee.

d)	The dollar depreciated against the rupee.

Currently, you can exchange 100 for $124.15. The inflation rate in Europe is expected to be 3.3 percent as compared to 3.1 percent in the U.S. Assuming that relative purchasing power parity exists, what should the exchange rate be five years from now?

Question 9 options:

a)

.8098/$1

b)

.8136/$1

c)

.8039/$1

d)

.8071/$1