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NEW QUESTION: 1
DFG's home currency is the D$.
DFG is heavily exposed to the exchange rate between the D$ and the L$, country L's currency. DFG's treasurer has noted the following:
* Inflation has been running at 5% in DFG's home country and 8% in country L
* Interest rates are 7% in DFG's home country and 11% in country L
* The spot rate is D$1.0000 = L$2.1000 and the three month forward rate is D$1.0 = L$2.1196 Which of the following statements is consistent with these figures?
A. Country L's interest rate is expected to decline relative to that of DFG's home country and inflation rates are expected to continue unchanged.
B. Interest rates are expected to continue unchanged, but country L's inflation rate will decrease in proportion to the inflation rate in DFG's home country.
C. Interest rates are expected to continue unchanged, but country L's inflation rate will increase in proportion to the inflation rate in DFG's home country.
D. Country L's interest rate is expected to increase relative to that of DFG's home country and inflation rates are expected to continue unchanged.
Answer: C
NEW QUESTION: 2
A. Option A
B. Option D
C. Option C
D. Option B
Answer: C
Explanation:
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A technician is installing Avaya Aura@ Conferencing 7 for the first time, and has acquired the proper hardware needed for the system installation.
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D. Install Windows 2003.
Answer: A
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