The one-year forward rate of the British pound is quoted at $1.42, and the spot rate of the British pound is quoted at $1.46. The forward ____ is ____ percent.

Once capital markets are integrated, it is difficult for a country to maintain a fixed exchange rate. Why?

Assume that a bank’s bid rate on Swiss francs is $0.56 and its ask rate is $0.60. Its bid/ask percentage spread is:

A purely domestic firm that sources and sells only domestically,

Assume that the bank’s bid quote for the Mexican peso is $0.131 and the ask price is $0.137. If you have $90,000, how many Mexican pesos could you purchase?

The one-year forward rate of the British pound is quoted at $1.51, and the spot rate of the British pound is quoted at $1.58. The forward ____ is ____ percent.

The inflation rate in the United States is 12.7 percent while the inflation rate in Japan is 7.2 percent. The current exchange rate for the Japanese yen (¥) is $0.0085. After supply and demand for the Japanese yen have adjusted in the manner suggested by purchasing power parity, the new exchange rate for the yen will be:

If countries’ economies are not integrated, the correlations of their economic growth levels would likely be ____. A firm would benefit ____ by diversifying sales among these countries relative to another set of countries whose economies are highly integrated.

Assume a U.S. MNC initiates direct foreign investment in the United Kingdom. If the British pound is expected to depreciate against the dollar, the dollar value of earnings remitted to the parent should ____. The parent may request that the subsidiary ____ in order to benefit from the expectation about the pound.

Find the amount of money that will be accumulated in the account.$1000 at 8% compounded semiannually for 3 years