Forex, EER, theories

Which of the following sets of currencies is among the top-5 most traded currencies in the forex markets?

• EUR, JPY, GPB

• USD, AUD, HKD

• PLN, HUF, CZK

• CNY, INR, BRL

Which type of market participants is responsible for the largest part of the turnover on the forex markets?

• Companies from the real sector (mainly oil firms)

• Commercial and investment banks

• Central banks

• Hedge funds

Which types of transactions generate the largest part of the forex market turnover?

• Forward and futures

• Swap and spot

• Options and other

• Stocks and bonds

Big Mac index (or Starbuck's latte) is a special case of

• Absolute puchasing power parity

• Relative purchasing power parity

• Uncovered interest rate parity

• Covered interest rate parity

Explaining changes in exchange rate by changes in price levels (inflation rates) is a description of

• Absolute puchasing power parity

• Relative purchasing power parity

• Uncovered interest rate parity

• Covered interest rate parity

Explaining the level of exchange rate by interest rates and expectations is a description of

• Absolute puchasing power parity

• Relative purchasing power parity

• Uncovered interest rate parity

• Covered interest rate parity

Which of the following indicators or theories provides the best measure of price competitiveness

• Nominal effective exchange rate

• Real effective exchange rate

• Purchasing power parity (absolute)

• Uncovered interest rate parity

If the nominal exchange rate of a currency appreciates and the inflation rate in a country is higher than abroad, the country experiences

• real appreciation

• real depreciation

• it depends on the relative scale of appreciation and inflation

• there is too little information to answer