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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › September 2016 Section B Q16 Bpp
Hi,
I’m doing the September 2016 Section B Q16 in Bpp and I have a problem. The question is given that the spot exchange rate is €1.543 per $1. The domestic short-term interest rate is 2% per year, while the foreign rate is 5% per year and they asked about the six-month exchange rate predicted by interest rate parity. However, the currency in the box (which we will write our answer in number) was $ instead of € since as I calculate it would be €1.566 per $1. As I understand when $ symbol appear with the box,the question requires an answer as how much $ per €1.
Please can you explain this to me.
Thank you so much
It is a typing mistake by BPP. The answer box should have a € symbol in front of it and not a $ sign. (It was correct in the real exam 🙂 )
Thank you very much 🙂 I was so confused about that.
It is confusing of them to make such a mistake 🙁