Answer:
The Current Account Balance of Country A will improve
Explanation:
As for the provided information the citizens of the country will save more as there is a positive shock. Accordingly the citizens shall save more, as the real is not changed the balance due to savings will increase of the current accounts.
This is reflected clearly in statement 1, this is because with the same real rate of interest the balance will increase, of current accounts and as a result it will improve.
Answer:
The loss of the financial institution is $413,000
Explanation:
Let's say that after 3 years the financial institution will receive:
0.5 * 10% of $10million
= 0.5 * 0.1 * 10000000
= $500,000
Then, they will pay 0.5 * 9% of $10M
= 0.5 * 0.09 * 10000000
= $450,000
Therefore, their immediate loss would be $500000 - $450000
= $50000.
Let's assume that forward rates are realized to value the rest of the swap.
The forward rates = 8% per annum.
Therefore, the remaining cash flows are assumed that floating payment is
0.5*0.08*10000000 =
$400,000
Received net payment would be:
500,000-400,000= $100,000. The total cost of default is therefore the cost of foregoing the following cash flows:
Year 3=$50,000
Year 3.5=$100,000
Year 4 = $100,000
Year 4.5= $100,000
Year 5 = $100,000
Discounting these cash flows to year 3 at 4% per six months, the cost of default would be $413,000
When you are trying to reduce debt it is easier to cut out things that aren't necessary.
You need shelter so you can't cut out rent. Utilities will be hard to cut down since it is used a lot. School shouldn't be cut down either, because that is important for you future job which may help you reduce debt in the future
Dining out is the easiest to cut out/cut down first. Many people dine out because they don't have the time to cook or because they don't want to. If you really want to reduce debt then you can make the time to cook or find the motivation to. This will greatly reduce that big chunk of your money going to dining out, since cooking your own food is a lot cheaper.
Hope this helped!
~Just a girl in love with Shawn Mendes
Multiplier = 1 / Reserve Ratio.
Multiplier = 1 / 0.02 (2%)
Multiplier = 50.
The answer is c. Israel won the West Bank in the 1967
War. As a result of this, many people
were taken out of their homes and became refugees. Israel then constructed many settlements for
Jews to live in. This move was
criticized as Illegal. To this day,
Israel still occupies the West Bank.