Uk inflation rate 10%; US inflation is 6%. Spot rate £:$1.7.
What is the predicted exchange rate in one year?
Answers say:
Explanation
1.7 x 1.06/1.1 = $1.64 :£
Completely misunderstood please explain. Should the question state the spot rate $:£ ?
Misprint?
Ask the Tutor ACCA FM
Exchange rate
OMG got it because figure is on the right side its 1,7 $:£ ???? What a heck :)
9y ago#2Correct :-)
Topic lockedNew replies are closed.