Answer:
The euro return to investing directly in euros is 180 5% 10% 360 = × ÷ , so the euros available in 180 days is EUR10,000,000 × 1.05 = EUR10,500,000. Alternatively, the EUR10,000,000 can be converted into Swiss francs at the spot rate of EUR1.1960/CHF. The Swiss francs purchased would equal EUR10,000,000 / EUR1.1960/CHF = CHF8,361,204. This amount of Swiss francs can be invested to provide a 180 4% 8% 360 = × ÷ return over the next 180 days. Hence, interest plus principal on the Swiss francs is CHF8,361,204 × 1.04 = CHF8,695,652. If we sell this amount of Swiss francs forward for euros at the 180-day forward rate of EUR1.2024/CHF, we get a euro
Subscribe to unlock
return of CHF8,695,652 ×EUR1.2024/CHF = EUR10,455,652. This is less than the return from investing directly in euros.If these were the actual market prices, you should expect investors to do covered interest arbitrages. Investors would borrow Swiss francs, which would tend to drive the CHF interest rate up; they would sell the Swiss francs for euros in the spot foreign exchange market, which would tend to lower the spot rate of EUR/CHF; they would deposit euros.
Explanation:
Answer:
The correct answer is option A (government debt owed to individuals in foreign countries).
Explanation:
- This applies to interest earned from some kind of creditor or outside nation, this must be repaid throughout the commodity these were invested in.
- External debt may be collected through foreign banking institutions, from global banking organizations including the World Bank, respectively., as well as from sovereign governments.
Some other alternatives given don't apply to the cases in question. So answer A is a good one.
Answer:
$10
Explanation:
Price Q Demanded Q Supplied Domestically Q Supplied by Importers $6 13,000 2,000 8,000
$7 12,000 4,000 8,000
$8 11,000 6,000 8,000
$9 10,000 8,000 8,000
<u>$10 9,000 = 9,000 </u><u> </u> 8,000
$11 8,000 10,000 8,000
If there is no international trade allowed, then we should look for the price at which the quantity demanded is equal to the quantity supplied by domestic producers. At $10 per widget, the total quantity demanded is 9,000 units and the total quantity supplied by domestic producers is 9,000 units.
First off you need to know what they mean. Trend means what people are in to and want to buy. Supply is how much the sellers have of items. If you have a huge supply of something that isn't in trend then you won't have any business. If you have a huge supply of something that is in trend, people will buy a lot of it. It is a factor of business like supply and demand. I hope this helped :)
Answer: adaptive culture
Explanation:
Contingency factors simply describe how the setting of an organization shapes and influences the structural dimension.
The contingency factor that will influence whether an organization is more effective with a primarily mechanistic organization design is the adaptive culture.
Adaptive culture has to do with the expectation of change and the adoption of the changes in an effective manner as this leads to growth, and innovation.