Which of the following is NOT a generally accepted measure of the riskiness of an investment?

During the period 2001-2004, the U.S. Federal Reserve lowered nominal interest rates on the dollar by more than the European Central Bank (ECB) did on the euro, a move that most market participants viewed as temporary. What was the effect on the dollar-euro exchange rate?

a. The dollar depreciated against the euro. b. The dollar appreciated against the euro. c. There was no change in the dollar-euro rate because expectations adjusted. d. There was no change in the dollar-euro rate because real interest rates were unchanged.

Profitable investment is most effectively promoted when:

a. the money supply and price level are stable. b. inflation is rising rapidly c. monetary policy is unanticipated. d. persistent inflation increases uncertainty.