- CFA Exams
- CFA Level I Exam
- Topic 2. Economics
- Learning Module 8. Currency Exchange Rates: Understanding Equilibrium Value
- Subject 5. The Impact of Balance of Payments Flows
CFA Practice Question
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: (
).Correct Answer: A
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 |