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Q. Subsidiary A of Mega plc has net inflows in Australian dollars of A$1,000,000, while Subsidiary B has net outflows in Australian dollars of A$1,500,000. The expected exchange rate of the Australian dollar is £0.30. What is the net inflow or outflow as measured in pounds?

Q. The relationship between the money rate of return, m, the real rate of return, h, and the inflation rate, i, is expressed in which of the following formulae?

Q. If U.S. inflation suddenly increased while European inflation stayed the same, there would be:

Q. Consider an MNC that is exposed to the Taiwan dollar (TWD) and the Egyptian pound (EGP). 25% of the MNC's funds are Taiwan dollars and 75% are pounds. The standard deviation of exchange movements is 7% for Taiwan dollars and 5% forpounds. The correlation coefficient between movements in the value of the Taiwan dollar and the pound is .7. Based on this information, the standard deviation of this two-currency portfolio is approximately:

Q. Assume the Canadian dollar is equal to £0.51 and the Peruvian Sol is equal to £0.16. The value of the Peruvian Sol in Canadian dollars is:

Q. When a country realizes a deficit on its current account:

Q. When the value of one currency falls relative to another currency, the exchange rate for the first currency has

Q. If inflation in New Zealand suddenly increased while euro area inflation stayed the same, there would be:

Q. Insurance purchased to cover the risk of expropriation __________, and will typically cover __________.

Q. International Monetary Fund is headquartered in