- CFA Exams
- CFA Level I Exam
- Topic 2. Economics
- Learning Module 8. Currency Exchange Rates: Understanding Equilibrium Value
- Subject 3. A Long-Term Framework for Exchange Rates
CFA Practice Question
If the nominal rate of interest is 10% and the real rate of interest is 3.5%, what is the expected inflation rate according to the Fisher effect?
Correct Answer: 6.5%
10% = 3.5% + 6.5%
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