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September 2016 Section B Q16 Bpp

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › September 2016 Section B Q16 Bpp

  • This topic has 3 replies, 2 voices, and was last updated 3 years ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • August 30, 2021 at 10:16 am #633497
    buondaiqua
    Member
    • Topics: 22
    • Replies: 18
    • ☆

    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

    August 30, 2021 at 3:21 pm #633531
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54684
    • ☆☆☆☆☆

    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 🙂 )

    August 31, 2021 at 3:58 am #633581
    buondaiqua
    Member
    • Topics: 22
    • Replies: 18
    • ☆

    Thank you very much 🙂 I was so confused about that.

    August 31, 2021 at 8:36 am #633611
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54684
    • ☆☆☆☆☆

    It is confusing of them to make such a mistake 🙁

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • The topic ‘September 2016 Section B Q16 Bpp’ is closed to new replies.

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