1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Bingel [31]
2 years ago
10

Assume that Swiss investors have francs available to invest in securities, and they initially view U.S. and British interest rat

es as equally attractive. Now assume that U.S. interest rates increase while British interest rates stay the same. This would likely cause: ____________
a. the Swiss demand for dollars to decrease and the dollar will depreciate against the pound.
b. the Swiss demand for dollars to increase and the dollar will depreciate against the Swiss franc.
c. the Swiss demand for dollars to increase and the dollar will appreciate against the Swiss franc.
d. the Swiss demand for dollars to decrease and the dollar will appreciate against the pound.
Business
1 answer:
Salsk061 [2.6K]2 years ago
8 0

The increase in US interest rates relative to the British interest rate would cause the Swiss demand for dollars to increase and the dollar will appreciate against the Swiss franc.

<h3>Why would the demand for dollars increase and the dollar appreciate?</h3>

When the interest rates of the US increases relative to that of the Britain, investors would earn a higher rate of return relative to that of Britain. As a result, investors would prefer to invest in the US.

When there is an increase in the demand for the US dollars relative to the Swiss franc, the US dollars would appreciate.

To learn more about interest rates, please check: brainly.com/question/26164549

You might be interested in
Suppose the equilibrium price of a physical examination ("physical") by a doctor is $200, and the government imposes a price flo
DerKrebs [107]

Answer: the quantity demanded of physicals decreases and the quantity of physicals doctors want to give increases.

Explanation:

Since the equilibrium price of a physical examination ("physical") by a doctor is $200, and the government imposes a price floor of $250 per physical, there will be a reduction in the quantity demanded of physicals decreases and the quantity of physicals doctors want to give increases.

This is because since the price is higher than the equilibrium price, the consumers will reduce their demand for the product while the suppliers will e willing to supply more in order to make more profit.

8 0
2 years ago
a procyclical fiscal policy, like those of many state and local governments in the united states, tends to worsen recessions or
natima [27]

Procyclical fiscal policies, like those of many US state and local governments, have the tendency to make recessions or inflation worse.

In order to affect economic conditions, particularly macroeconomic recessions conditions, fiscal policy refers to the use of government spending and fiscal policies tax policies. These include employment, the total demand for goods and services, inflation, and economic expansion.

In order to boost demand and stimulate the economy during a recession, the government may reduce tax rates or increase spending. As an fiscal policies alternative, it might increase rates or reduce spending to slow down the economy and fight inflation.

Comparing fiscal policy to monetary policy, which is implemented by recessions central bankers rather than elected government officials, is common practice.

Learn more about fiscal policies here

brainly.com/question/27250647

#SPJ4

4 0
1 year ago
On july 7, smithview bank lent $430,000 to andrews retail shop on a 90 day, 6% note. what is the maturity date of the note?
Snezhnost [94]

<span>B .There are 24 days remaining in July (31 - 7 ); 31 days in August; 30 days in September; and 5 days in October (24 + 31 + 30 + 5 = 90 days).
</span>
The days are not only based on estimation but on Accurate number of days in each month. Since it is written in july 7 then its maturity will be on october 5
6 0
3 years ago
The purpose of the debt covenant that requires maintaining a minimum level of net working capital is to ________.A) protect the
erma4kov [3.2K]

Answer:

Answer is option C i.e. ensure a cash shortage does not cause an inability to meet current obligations.

Explanation:

Debt covenants can be understood as an agreement between the lenders and the borrower. There are certain terms that are to be considered by the parties of the agreement. One such term is the maintenance of a minimum level of net working capital so that when a company/organization that has borrowed the money runs bankrupt can meet its obligation to pay back the required amount to the lender on time. Therefore, maintenance of a minimum level of net working capital is to ensure that the cash shortage does not cause an inability to meet current obligations.

7 0
3 years ago
Can a naturalized citizen of the United States—that is, someone who was not born in the US, but who successfully has applied for
Delicious77 [7]
B. is the correct answer
5 0
3 years ago
Other questions:
  • 10.
    8·1 answer
  • Compared to attending a technical school, completing a four year college degree allows you to
    14·2 answers
  • Initech has 7 million shares of common stock outstanding and 50,000 bonds outstanding. The bonds pay semi-annual coupons at an a
    14·1 answer
  • While visiting a coffee shop, you see a poster advertising a concert for a music group you'd love to see. You notice there's an
    12·1 answer
  • Swan Textiles Inc. produces and sells a decorative pillow for $98.00 per unit. In the first month of operation, 2,200 units were
    14·1 answer
  • Differentiate between manmade and natural attraction​
    15·1 answer
  • Suppose that a certain country has an MPC of 0.8 and a real GDP of $400 billion. If its investment spending decreases by $5 bill
    9·1 answer
  • Identifying and Classifying Balance Sheet and Income Statement Accounts
    8·1 answer
  • Coworker: "I have a customer who is very taciturn."
    13·1 answer
  • Which of the following policies would lead to greater productivity in the weaving industry? Check all that apply. Encouraging sa
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!