Why should I choose AnalystNotes?

Simply put: AnalystNotes offers the best value and the best product available to help you pass your exams.

Basic Question 1 of 6

A high-yield currency's real value has a positive correlation with:

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
You need to log in first to add your comment.
Your review questions and global ranking system were so helpful.


Learning Outcome Statements

explain how flows in the balance of payment accounts affect currency exchange rates;

CFA® 2024 Level II Curriculum, Volume 1, Module 8.