QUESTION 5 10 points Save Answer According to UP, if Argentina peso interest is

Question

QUESTION 5 10 points Save Answer According to UP, if Argentina peso interest is 6% and Yuan interest is 4%, then investors are expecting peso to relative to Yuan bype Depreciate; 2 Appreciate; 2 Appreciate; 10 Depreciate; 10 percent. QUESTION 6 10 points Save Answer According to UP, if pound interest is 7% higher than Yen interest, then investors are expecting pound to relative to Yen by__percent. Appreciate; 7 Depreciate; 7 QUESTION 7 10 points Save Answer 1-year $ interest rate is 6% and 1-year Yuan interest rate is 10%. According to UP, investors are expecting $ to _-relative to Yuan by--pe ypercent. Depreciate; 4 Appreciate; 4 Appreciate; 16 Depreciate; 16

Explanation / Answer

5. Appreciate; 2

When Argentina peso interest rate is higher then demand of peso increase in the market which appreciates Peso by 2%.

6. Appreciate; 7

When pound interest rate is higher then demand of pound increases in the market which leads to appreciation of Pound in the market by 7%.

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