1-Circle the correct quote to use. You are converting dollars into euros.
$1.4653/€ ask
$1.4577/€ bid
2-If Sarah does a currency exchange and she tells you that she converted at $.1022/MXN bid, what currency did Sarah sell and what currency did Sarah buy?
Sarah sold the ________
Sarah bought the _________
3-Suppose you bought a stock for $50 a while ago and now, it is worth $53.44. When you bought the stock, the CPI index was at 146, and now it is at 151.4.
What is the nominal return?
What is the inflation rate?
What is the real rate of return?
4-You invest in foreign stocks (Japanese Yen denominated stocks). General Electric is an international bond issuer (Japanese Yen denominated bonds). Generally speaking, if the Japanese Yen appreciates over time this will be __________ for you and ____________ for General Electric.
Good; Good
Good; Bad
Bad; Bad
Bad; Good
5-Convert $586 into euros at an exchange rate of $1.2145/€. How many Euros will you have?