Quizalize logo
placeholder image to represent content

International fisher effect quiz

Quiz by Jamal Haider Naqvi

Feel free to use or edit a copy

includes Teacher and Student dashboards

Measure skills
from any curriculum

Tag the questions with any skills you have. Your dashboard will track each student's mastery of each skill.

With a free account, teachers can
  • edit the questions
  • save a copy for later
  • start a class game
  • automatically assign follow-up activities based on students’ scores
  • assign as homework
  • share a link with colleagues
  • print as a bubble sheet

Our brand new solo games combine with your quiz, on the same screen

Correct quiz answers unlock more play!

New Quizalize solo game modes
10 questions
Show answers
  • Q1
    What is the International Fisher Effect (IFE)?
    An international agreement on fishing regulations.
    A theory that suggests changes in exchange rates between currencies are determined by the difference in nominal interest rates between the countries.
    A theory that predicts fish populations in international waters.
    A technique used to increase fish catch in international waters.
    60s
  • Q2
    What is the purpose of the International Fisher Effect (IFE)?
    To promote the conservation of fish populations worldwide.
    To standardize fish measurement units for international trade.
    To regulate international fishing practices.
    To explain the relationship between interest rates and exchange rates between countries.
    60s
  • Q3

    There is much evidence to suggest that Japanese investors invest in U.S. Treasury securities when U.S. interest rates are higher than Japanese interest rates. These investors most likely believe in the international Fisher effect.

    false
    true
    True or False
    60s
  • Q4

    The IFE theory suggests that foreign currencies with relatively high interest rates will appreciate because the high nominal interest rates reflect expected inflation

    false
    true
    True or False
    45s
  • Q5

    If theinternational Fisher effect (IFE) holds, the local investors are expected toearn the same return from investing internationally as they would frominvesting in their local markets.

    true
    false
    True or False
    45s
  • Q6

    Which of the following theories suggests the percentage change in spot exchange rate of a currency should be equal to the interest rate differential between two countries?

    international Fisher effect(IFE).

    purchasing power parity (PPP).

    Interest rate parity (IRP).

    60s
  • Q7

    Which of the following theories suggests that the percentage difference between the forward rate and the spot rate depends on the interest rate differential between two countries?

    interest rate parity (IRP).

    purchasing power parity(PPP).

    international Fisher effect(IFE).

    30s
  • Q8

    If nominal British interest rates are 3% and nominal U.S. interest rates are 6%, then the British pound (£)is expected to ____ by about ____%, according to the international Fisher effect (IFE).

    depreciate; 2.9

    appreciate; 1.0

    appreciate; 2.9

    60s
  • Q9

    The interest rate in the U.K. is 7%, while the interest rate in the U.S. is 5%. The spot rate for the British pound is $1.50. According to the international Fisher effect (IFE), the British pound should adjust to a new level of

    $1.43.

    $1.47.

    $1.53.

    120s
  • Q10

    The international Fisher effect (IFE) suggests that a home currency will depreciate if the current home interest rate exceeds the current foreign interest rate.

    true
    false
    True or False
    45s

Teachers give this quiz to your class