Suppose the current exchange rate is dm 14 what does it, Financial Management

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Suppose the current exchange rate is dm 14 what does it

Suppose the current exchange rate is DM 1.4/$. Estimate the DM/$ exchange rate four years from now assuming that in the U.S. (Germany) are 6%. (4%) p.a. inflation rates stay constant each year How reliable is your estimate. Explain carefully? What does it mean to say that a currency is fully convertible?

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