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CHOOSE THE OPTION IS HIGHLIGHTED BELOW AND IF POSSIBLEYOU CAN EXPLAIN BECAUSE AM LEARNING

CHOOSE THE OPTION IS HIGHLIGHTED BELOW AND IF POSSIBLEYOU CAN EXPLAIN BECAUSE AM LEARNING

CHOOSE THE OPTION IS HIGHLIGHTED BELOW AND IF POSSIBLEYOU CAN EXPLAIN BECAUSE AM LEARNING

1a. According to IMF definitions and variable definitionsprovided in lecture, the purchase of foreign currency by acountry's central bank (paying with the currency of its owncountry) should show up in that country's balance of paymentsaccounts as

an increase in BPI.

an increase in OSB.

a decrease in OSB.

an increase in CA.

an increase in KA

1b.

.Suppose the variables R, R*, E, F, and Ee aredefined . If we let x = (Ee - E)/E and y = (F- E)/E bydefinition, then according to the covered interest paritycondition,

R = R* - y

R = R* / y

R = R* + y

R = R* - x

R = R* + x

Abhinav 04-Dec-2019

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