3. Suppose that people in France decide to permanently increase their savings rate. Predict what will happen to the French bond market in the future. Can France expect higher or lower domestic interest rates?

As an Omani investor you have invested in Tunisian Government bonds (denominated in Tunisian Dinar) which pays you fixed coupon rate. Assume that during your investment period, the Omani Rial (OMR) has significantly appreciated against Tunisian Dinar. How would it affect your cash flows in Oman? Why?

In a floating exchange rate system:   Question 15 options:   The Balance of payments will always equal the government budget   The Balance of Payments should always be in surplus   The government intervenes to influence the exchange rate   The exchange rate should adjust to equate the supply and demand of the currency

Should the economy’s current fragile recovery gather momentum, it is likely the Federal Reserve will decide to subtract liquidity from the economy.  How will it do that?     By selling U.S. Treasury bonds     By purchasing U.S. Treasury bonds     By having the U.S. Treasury purchase goods and services     By having the U.S. Treasury lower taxes     By having the U.S. Treasury raise taxes

Which do you think is stronger, the U.S. dollar or Euro? Why?

Suppose that the nominal interest rate in the euro area is 2%, and the nominal interest rate in Switzerland is 4%. Suppose inflation is expected to be 0.5% in the euro area. If the Fisher Effect holds, then the real interest rate in the euro area is approximately the expected inflation in Switzerland is O2%; impossible to determine. 1.5%; 2.5% 2.5%; 0.5% None of the above is correct. 1.5%; 0.5% and

Foreign Exchange Risk and the Cost of Borrowing Swiss Francs. The chapter demonstrated that a firm borrowing in a foreign currency could potentially end up paying a very different effective rate of interest than what it expected. Using the same baseline values of a debt principal of SF1.5 million, a one-year period, an initial spot rate of SF1.4700/5. a 5.148% cost of debt, and a 34% tax rate, what is the effective after-tax cost of debt for one year for a U.S. dollar-based company if the exchange rate at the end of the period was a. SF14700/$ b. SF1.4300/5 c. SF1.3980/ d. SF1.6050/5 GULD a. If the exchange rate at the end of the period was SF1.4700/5, what is the effective after-tax cost of debt? % (Round to four decimal places)

How do global economic growth trends impact interest rate parity?

In 2020, the whole world banking sector including Pakistan has gone through the most unexpected and uncertain era. Do you think in 2021, the current policies of state bank of Pakistan can revive the banking sector of Pakistan?

6. How does the deposit insurance help the depositors? What are the pitfalls of the scheme? Can it help stabilizing Hong Kong dollar exchange rate in the face of regional and global financial crises?