A 10 b 7 c 3 d 13 e 17 c consider the situations of a

A) 10%
B) 7%
C) 3%
D) 13%
E) 17%
C
Consider the situations of a lender of money and a borrower of money. Which of the
following situations is least burdensome for the borrower?
Consider the situations of a lender and a borrower of money. Which of the following
situations is most advantageous to the lender?

Chapter 19 -
nominal interest rate of 7.5%
C) inflation rate of -1%
nominal interest rate of 3%
D) inflation rate of 2%
nominal interest rate of 4%
E) inflation rate of 3%
nominal interest rate of 7.5%
B
During the 1970s, Canada experienced an unusual pattern of interest rates. During
this period
Which of the following groups would benefit most in real terms from a period of high
and unanticipated inflation, as was experienced in Canada in the early 1970s?
A) mortgage companies and banks who issued fixed-rate mortgages to clients
B) banks with outstanding loans to their customers
C) seniors whose income is largely interest earnings on past savings
D) firms that maintain large cash balances for the operation of their business
E) homeowners who had long-term fixed-rate mortgages
E
The Canadian exchange rate is defined to be the
A
If the Canadian dollar exchange rate increases, the
A
If one Canadian dollar can be exchanged for 0.5 euros, we say that the Canadian-
euro exchange rate is

Chapter 19 -
If 0.75 U.S. dollars can be exchanged for one Canadian dollar, we say that the
Canadian-U.S. exchange rate is
A) 0.75.