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wolverine [178]
4 years ago
6

Suppose that currency traders expect that the value of U.S. dollarU.S. dollar will fall in the future. How will this will affect

the demand and supply of U.S. dollarU.S. dollar in the foreign exchange​ market?
Business
1 answer:
antoniya [11.8K]4 years ago
7 0

Answer:There will be increase in supply and decrease in demand

Explanation:

One of the Law of demand states that the lower the price the higher the quantity demanded and vice versa, while for supply it states that the higher the price the higher the quantity supplied and vice versa.

Since the value of US dollar is still high then the supply will be high in the market, but with the expectation of future fall, demand will be low because buyers are waiting for drop in value. There will be excess supply and lower demand.

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A firm supplies aircraft engines to the government and to private firms. It must decide between two mutually exclusive contracts
tatiyna

Answer:

Option (A) is correct.

Explanation:

If it contracts with a private firm, for 1st contract,

profit = [(2 × 0.25) + (1 × 0.4) - (1 × 0.35)]

         = 0.55 million dollars

If it contracts with the government, or second contract ,

profit = ($4 × 0.4) - ($2.5 × 0.6)

         = 0.1 million dollars

Therefore, it is clear from the above calculations that the contract with a private will offer more profit as compared to the contract with the government.

3 0
3 years ago
Seaside issues a bond with a stated interest rate of 10%, face value of $50,000, and due in 5 years. Interest payments are made
mars1129 [50]

Answer:

Total $46,319.9565

Explanation:

We need to calculate the value of the present value of the bond payment

and the maturity using the current market rate

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C 2500 (50,000 x 0.10/2)

time 10 (5 years 2 payment per year)

rate 0.06     (12% annual --> divide by 2 to convert semiannual)

2500 \times \frac{1-(1+0.06)^{-10} }{0.06} = PV\\

PV $18,400.2176

\frac{Maturity}{(1 + rate)^{time} } = PV

Maturity 50000

time 10

rate           0.06

\frac{50000}{(1 + 0.03)^{10} } = PV

PV   $27,919.7388

PV bond interest payment  $18,400.2176

PV maturity payment       $27,919.7388

Total $46,319.9565

3 0
3 years ago
Explain what "stakeholder theory" means and identify specific ways in which pressure from stakeholders other than shareholders h
Tomtit [17]

Answer:The stakeholders are on the lookout to ensure the firm performs maximally and would want the best decision in place. This is how they influence corporate governance

Explanation:

Stakeholders theory is the theory of organizational management and business ethics that accounts for multiple constituencies impacted by business entities such as employees, local market, creditors, supplies and others. The stakeholders are on the lookout to ensure the firm performs maximally and would want the best decision in place. This is how they influence corporate governance

5 0
4 years ago
Give an example of an economic activity from a traditional economy that is seen in today's market
tankabanditka [31]
Agriculture - This economic activity is ubiquitous in both traditional and modern markets. Since the Neolithic period, humans have domesticated different crops and animals for human consumption. However, in traditional economies, agriculture is less mechanized than in modern markets. Nevertheless, the basic production of crops and animals in traditional markets is fundamentally the same as mechanized production of the same in modern markets. 
5 0
4 years ago
The Muffin House produces and sells a variety of muffins. The selling price per dozen is $20, variable costs are $14 per dozen,
topjm [15]

Answer:

Break-even point=  600 units

Explanation:

Giving the following information:

The selling price per dozen is $20, variable costs are $14 per dozen, and total fixed costs are $3600.

The break-even point in units is the number of units required to cover for the fixed costs. We need to use the following formula to calculate it:

Break-even point= fixed costs/ contribution margin

Break-even point= 3,600/ (20 - 14)= 600 units

7 0
4 years ago
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