1. Suppose the exchange rate betweenUS$ and Euro, US$ and Japanese Yen are:
   1 US$ = 2 Euro; 1US$ = 100 Yen.
   Suppose theinterest rates published by central banks in the U.S., Euro zone,and Japan are 2%, 3%, and 4%, respectively;
   And, suppose theinflation rates in the U.S., Eurozone, and Japan are 1%, 2%, and1%,
   respectively.Therefore, (calculation formula is optional)
Q1.1: How much Yen can 1 Euro exchangefor?
Answer1.1:
Q1.2: What is the real interest ratefor the US, Euro zone, and Japan, respectively?
Answer1.2:
           US=
           Euro zone=
           Japan=
Q1.3: (True/False) A person with 2Euro can convert the money into Yen and save it in Japanese banksfor one year, and get 103 Yen back.
Answer1.3:
