• 2021-04-14
    7. If the expected future spot exchange rate value of the foreign currency decreases, with the interest rate differential unchanged, the current spot exchange rate value of the domestic currency:
  • increases.

    内容

    • 0

      If the forward exchange rate, defined as the domestic currency price<br/>of the foreign currency, is smaller than the spot exchange rate,<br/>there is a ( ). A: forward premium on the foreign currency. B: forward discount on the foreign currency. C: shortage of dollars. D: surplus of dollars.

    • 1

      According to the interest rate parity theory, when the forward foreign exchange rate is premium, it means that the domestic interest rate( ) A: is equal to the foreign exchange rate B: lower than foreign exchange rates C: higher than foreign exchange rates D: Not sure

    • 2

      In a direct quotation, if the foreign currency is appreciating, the exchange rate __________.

    • 3

      For an indirect quote, a lower exchange rate indicates that the domestic currency is __________.

    • 4

      What would the foreign interest rate need to be to achieve interest rate parity if the domestic interest rate is 5%, the forward rate is 1.48 and the spot rate is 1.5? A: 6% B: 8% C: 7% D: 2%