FIN 366 Financial Institutions
FINAL EXAM
1.
If
purchasing power parity applied to Big Macs, and a Big Mac cost $2.50 in the
United States while the British pound cost $1.50 and €0.90 euros could be
obtained for $1.00, (a) how much would the Big Mac cost in Britain and (b)
Germany respectively?
2.
Calculate
the gross profit that an underwriter would make if it sold $10 million worth of
bonds at par (face value) and paid the firm that sold the bonds 99.25% of par.
3.
An expansion in the U.S. money
supply
4.
Which Fed action does not directly increase total reserves in the
banking system?
5.
If the cost of yen per dollar
changes from 100 to 110 yen per dollar,
