1. If prices never change in a country then the nominal interest rate is the same as or equal to the A) real exchange ra

[answerhappygod]

1. If prices never change in a country then the nominalinterest rate is the same as or equal to theA) real exchange rateB) inflation rateC) expected inflation rateD) real interest rate
2. -__-is not a function of the Bank of Canada when itperforms the role as the federal government's fiscalagent?
A) Advising on federal government borrowingsB) Servicing the federal government's outstanding debtC) Setting interest rates payable on time depositsD) Managing new debt offerings by the federal government
3. If the CAD depreciates against the USD then US productswill be,A) no change in priceB) become cheaper in CanadaC) cheaper in USD) more expensive in Canada
4. Last week the Canadian dollar moved from 0.60 euro to0.80 euro, the euro has----------and the Canadian dollar has--------?A) appreciated; depreciatedB) depreciated; appreciatedC) depreciated; depreciatedD) appreciated; appreciated
5. Identify the statement that is incorrect as it relatesto spot market liquidityA) The more willing buyers and sellers there are, the more liquid amarket is.B) If a currency is illiquid, an MNC is typically able to quicklypurchase that currency at areasonable exchange rateC) A currency's liquidity affects the ease with which an MNC canobtain or sell thatcurrency.D) The spot markets for heavily traded currencies such as theJapanese yen are very liquid.Page