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djyliett [7]
4 years ago
13

You can buy or sell the £ spot at $1.98 to the pound. You can buy or sell the pound one-year forward at $2.01 to the pound. If U

.S. annual interest rates are 5 percent, what must be the approximate one-year British interest rate if interest rate parity holds?
Business
1 answer:
Aleonysh [2.5K]4 years ago
5 0

Answer:

X= 3.45%

Explanation:

Data provided

One year future exchange rate = $2.01

Spot exchange rate = $1.98

Interest rate is USA = 5%

The computation of British interest rate is shown below:-

Assume Interest rate in UK = X%

One year future exchange rate = Spot exchange rate × (1 + Interest rate is USA) ÷ (1 + X%)

$2.01 = $1.98 × (1 + 5%) ÷ (1 + X%)

$2.01 ÷ $1.98 = (1 + 5%) ÷ (1 + X%)

(1 + X%) = 1.05 ÷ 1.01515

X= 3.45%

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Answer:

TRUE

Explanation:

A basket purchase is the acquisition of a number of assets as a group, in a single purchase transaction. This is common when the basket purchase is lower than the price charged for individual assets.

7 0
3 years ago
The management department at a local university began posting all assignments and other class materials to a course management w
Mamont248 [21]

Answer:

The correct answer is A.process.

Explanation:

Due to the extension of the term “innovation” it is important to keep in mind that two different meanings can be distinguished:

  1. Innovation, as a process by which an idea is transformed into a novel product or service in the market, or by which a new manufacturing process or new organization or marketing methods is incorporated in the company (innovation capacity of the company).
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4 years ago
Isaac Inc. began operations in January 2021. For some property sales, Isaac recognizes income in the period of sale for financia
Sati [7]

Answer:

$148.3 million

Explanation:

Calculation to determine the deferred tax liability that Isaac would report in its year-end 2021 balance sheet

Using this formula

Deferred tax liability=Total future taxable income × Tax rate

Let plug in the formula

Deferred tax liability=(2022 137 million+2023 129 million+2024 162 million+2025 165 million)*25%

Deferred tax liability=$593 million*25%

Deferred tax liability=$148.3 million

Therefore the deferred tax liability that Isaac would report in its year-end 2021 balance sheet is $148.3 million

8 0
3 years ago
The market system is also known as ________, while the command system is also known as ________.
Afina-wow [57]

The market system is also known as capitalism, while the command system is also known as communism. The market system is owned by private ownership, businessman and companies, hence it has capitalism concept. The command system is owned by a community or public.

Hence it can be said that

The market system is also known as <u>capitalism</u>, while the command system is also known as <u>communism</u>.




3 0
3 years ago
This Government Representative is appointed by the Contracting Officer to serve as a technical liaison between the Government an
Alex Ar [27]

Answer:

Contracting Officer Representative

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  • An agent of a contracting officer is a person appointed in compliance with the subdivision of DFARS .and approved by the contracting agency in law to automate repetitive technological or essential functions.
  • A security officer is a man who shares information to interact and coordinate their events between two organizations.

by these process COR work.

3 0
3 years ago
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