Why should I choose AnalystNotes?
AnalystNotes specializes in helping candidates pass. Period.
Basic Question 1 of 6
A high-yield currency's real value has a positive correlation with:
B. expected inflation differential: (
).
C. risk premium differential: (
).
A. nominal yield spread: (iH - iL).
B. expected inflation differential: (
).C. risk premium differential: (
).User Contributed Comments 2
| User | Comment |
|---|---|
| tsp2017a | if the high-yield currency's real value goes up, why would the nominal yield-spread also go up? not sure if this answer is correct. |
| Yarrstar | Nominal yield is independent variable |
I was very pleased with your notes and question bank. I especially like the mock exams because it helped to pull everything together.
Martin Rockenfeldt
Learning Outcome Statements
explain how flows in the balance of payment accounts affect currency exchange rates;
CFA® 2025 Level II Curriculum, Volume 1, Module 8.