Author: Anonymous

Assume that country A’s interest rate is lower than country B’s interest rate at a point right now. If there are no other expected changes, we would anticipate that country A’s currency will _______ relative to B’s. 

Assume that Thailand is experiencing inflation that is 1.5 times that seen in China (holding all else constant). From the theory of relative PPP we know that the Baht will ______ and the Yuan _______. 

The interest rate in Thailand is 3.5% and the interest rate in India is 3.9%. If it remains this way for the year, then we can conclude that interest rate parity has not been established. 

The nurse instructs a client on the importance of reducing exposure to infections while pregnant. Which client statement indicates that teaching has been effective?

This inflammatory disease associated with joint pain and arthritis is caused by a bacteria and transmitted by ticks.

Suppose you own a business in China that is negotiating with a business in Thailand. A contract requires them to pay you in Baht in 3 months. You expect that the future spot rate will involve an appreciation of the Yuan against the Baht. Your interests are best served by an uncovered exchange rate.    

What is the benefit of trade for Germany and France? 

Suppose that interest rates in Thailand increase. This creates a capital ______ and the price of the Baht _____. 

Assume that interest rate parity does not currently exist between Thailand and China. If investment funds flow towards Thailand, this means that the demand for Baht ______ and the currency _________. 

The following table illustrates what can be produced in 1 day with the same stock of resources in France and Germany. Use the information to answer the following questions.     cheese  beef France 34 40 Germany 56 20 Based on the results from the previous question, we can see that: