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:
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 |
You have a wonderful website and definitely should take some credit for your members' outstanding grades.
Colin Sampaleanu
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.