Percentage Depreciation Assume the spot rateof the British pound is $1.73. The expected spot rate1 year from now is assumed to be $1.66. Whatpercentage depreciation does this reflect?

The British pound has _______ and the dollar has _______ when it goes from $1.50 to $1.00 in value.a.depreciated, depreciatedb.appreciated, depreciatedc.appreciated, appreciatedd.depreciated, appreciated

The one-year expected inflation rate at home and foreign is 4% and 7%, respectively. You also observe the current real exchange rate q(home/foreign) is 1.5. According to the speed of convergence, which says that the deviation from the purchasing power parity will shrink by 15% per year, what is the expected depreciation rate of home currency against the foreign currency (rounded to 2 decimal places)? Question 5 Answer a. 2% b. -12% c. -2% d. 12% e. 8% f. -8%

Assume that the interest parity condition holds. Also assume that the Australian interest rate is 8% while the U.K. interest rate is 6%. Given this information, financial markets expect the U.K. pound toGroup of answer choicesdepreciate by 14%.depreciate by 2%.appreciate by 2%.appreciate by 14%.

how to calculate depreciation or appreciation of one currency

Suppose that a new trade agreement between Australia and Canada causes the exchange rate to change from CAD 0.9 /AUD to CAD 0.8 /AUD. Which currency has depreciated as a result of this trade agreement and by what percentage? CAD by 11.1% AUD by 11.1% AUD by 12.5% Neither currency has depreciated CAD by 12.5%