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pentagon [3]
1 year ago
12

Suppose interest rates in the UK fall. This will affect the side of the foreign exchange market and cause exchange rates to

Business
1 answer:
maw [93]1 year ago
5 0

A fall in the interest rates in the UK, would cause the exchange rate of the UK to decline.

<h3>What is the impact of a fall in interest rate on exchange rate?</h3>

Exchange rate is the rate at which one currency is exchanged for another currency. Interest rate is the return earned by investors for allowing business owners use their funds.

When interest rate declines, the return earned by investors would fall. This would discourage investors from investing. This would lead to a decline in the demand for the UK currency. This would depress the exchange rate.

To learn more about exchange rate, please check: brainly.com/question/25780725

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Suppose the Fed carries out an open market sale of $100m and simultaneously decreases the minimum required reserve ratio from 10
andrey2020 [161]

Answer:

loanable amount after Fed operation = $950 M

Securities after fed operation = $50 M

attached below is the T-account table

Explanation:

Given data:

For assets : securities = $100 M ,  Loans = $800 M

For Liabilities :  Constant demand deposit = $1000 M

difference between the assets and liability = $100 M  and this makes the Banking system unbalanced hence the Banking system needs the intervention of the Fed. and the reduction in the required reserve ratio from 10% to 5% is the right action

How with the reserve ratio reduced to: 0.05

hence required  Minimum required securities after operation = 0.05 * 1000 M = 50 M

Note : Total demand deposits = securities + loanable amount

therefore loanable amount after Fed operation = $1000 M - $50 M = $950

Attached below is the T-table

When both tables are compared it can be seen that there is a significant increase  in the loanable amount after the Fed's operations and increase in Loanable amount transcends to increase in Monetary base

5 0
3 years ago
Michelle is attending a university where tuition for one year costs $17,300. She has a scholarship worth $5,000 per year. She ea
Dmitry_Shevchenko [17]

Answer:

$41,400

Explanation:

Tuition will increase by $500 each year

Year 1 tuition = $17,300

Year 2 tuition = $17,800

Year 3 tuition = $18,300

Year 4 tuition = $18,800

Total = $72,200

Scholarship per year = $5000

Total scholarship for 4 years = 4 * $5000

= $20,000

Earnings per year = $2,700

Total earnings for four years = 4 * $2,700

= $10,800

She plans to take out a loan to cover the remaining tuition costs

Loan = Total tuition - (Total scholarship for 4 years + Total earnings for four years)

= $72,200 - ( $20,000 + $10,800)

= 72,200 - (30,800)

= 72,200 - 30,800

= 41,400

Loan = $41,400

Michelle need to borrow $41,400

6 0
3 years ago
What is income elasticity onlyy
Lina20 [59]

Income elasticity of demand measures the receptiveness of the quantity demanded for a good or service to a change in income.

It's calculated as the ratio of the percentage change in quantity demanded to the percentage change in income.

Explanation:

Hope this helps!!

8 0
3 years ago
Clyde contracts with Deephole Excavation, Inc., to dig an agricultural pond on his farm. Deephole is to keep the excavated grave
anastassius [24]

Answer: Discharged

Explanation:

 Discharge contract is one of the type of concept that helps in making the various types of agreement between the two members or any two companies.

The discharged contract is basically discharged by using the various types of operation of laws and also b terminating the different types of obligations.

According to the given question, the Clyde contracts with the deep-hole excavation Inc., is one of the type of discharged contract for the process of digging an agriculture farm. Therefore, Discharged contract is the correct answer.  

8 0
3 years ago
Research indicates that 17 percent of consumers recognize the Flatfeet brand of athletic wear. If there are 30,000 consumers in
jenyasd209 [6]

Answer:

5,100 Consumers

Explanation:

The 17% of the total consumer recognize Flatfeet brand which means:

Consumers who recognize Flatfeet = Total Consumers * percentage of people that recognize the brand

Here

Total consumers are 30,000

And

Percentage of people that recognize the brand is 17%

By putting values, we have:

Consumers who recognize Flatfeet Brand = 30,000 * 17%

Consumers who recognize Flatfeet Brand = 5,100 Consumers

3 0
3 years ago
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