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Month Forward Rate Quiz

The International Fisher Effect says that the _______.

A forward rate is equal to a future spot rate if foreign exchange markets are ________.

Which of the following currencies is directly linked to the value of gold?

If the spot rate of the Deutsche mark is $.32 and the six month forward rate is $.30, what is the forward premium or discount on an annual basis?

If the German mark is equal to $.35 and the French franc is worth .31 German mark, what is the franc/dollar exchange rate?

The theory of interest rate parity means that the ______.

For a US resident, ___is a direct quote while ___ is an indirect quote.

If the spot rate of the Deutsche mark is $.30 and the six month forward rate of the mark is $.32, what is the forward premium or discount on an annual basis?

If the Canadian dollar is equal to $.86 and the German mark is equal to $.28, what is the value of the German mark in terms of Canadian dollars?

If the Japanese yen was worth $.0035 six months ago and is now worth $.0045 today, how much has the yen appreciated or depreciated?