Chapter 5 - Study Questions For Week 11 With Answers Page 4
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5d. Financial asset pricing.
8. The __________ exchange rate is the market rate between two currencies.
a. Nominal
b. Real
c. Purchasing Power
9. The __________ exchange rate is a weighted average of the real bilateral exchange rates
across a number of foreign countries.
a. Nominal
b. Real bilateral
10. According to the Financial Times rating of MBA programs, one difficulty in comparing
starting salaries for different MBA programs is that
a. Many MBAs are unemployed
b. Many MBAs earn unreported perks
c. Converting salaries using exchange rates doesn’t account for price differences in different
countries.
d. Different countries have different tax rates.
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