Economics 2164A/B Study Guide - Midterm Guide: U.S. Bancorp, Designer Clothing, Autarky
19 Apr 2014
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Winter 2014 (please note that to prepare yourself for the test, you have to learn all the materials that were covered/discussed in class) 1: 25 british pounds, 30 british pounds, 20 british pounds, 35 british pounds, 10 british pounds, what is the exchange rate between the dollar and the british pound if a pair of american jeans costs. Further, assume that the spot exchange rate is . 05 per euro, and the interest rate on dollar deposits is. 10 percent and on euro it is 4 percent. Under these assumptions: interest parity does not hold, it is hard to tell whether interest parity does or does not hold, not enough information is given to answer the question, none of the above, interest parity does hold. Mcq: d, a, e, a, e, a, d, b, c, d 11. C: b, short answer (please note that this is a brief answer key, writing these answers in exam may not ensure full marks):
