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
Marianna [84]
3 years ago
14

Suppose 90-day investments in Britain have a 6% annualized return and a 1.5% quarterly (90-day) return. In the U.S., 90-day inve

stments of similar risk have a 4% annualized return and a 1% quarterly (90-day) return. In the 90-day forward market, 1 British pound equals $1.65. If interest rate parity holds, what is the spot exchange rate?
Business
1 answer:
Vilka [71]3 years ago
5 0

Answer:

1 pound = $1.6582

good luck

You might be interested in
A sudden stop will be easier to navigate if the country borrows internationally in foreign currencies and lend locally in its do
natulia [17]

Answer: False

Explanation:

A sudden stop refers to the sudden decline in net capital inflows in the economy from outside. This is a significant method by which the economy can have access to foreign exchange.

If the country therefore borrows internationally in foreign currencies whilst lending in domestic currency, the sudden stop will be difficult to navigate because it will impair the country's ability to pay off the international creditors it has because it will not have enough of the required foreign currency to pay them.

8 0
2 years ago
The total value of all final goods and services produced in a given year, calculated using the prices of a selected base year, i
vodomira [7]

Answer:

real GDP.

Explanation:

GDP is defined as the monetary value of all goods and services produced in an economy within a give time period. It is a measure of how productive an economy is.

Real GDP considers market prices of commodities in relation to a base year.

For example if 2012 is considered to be the base year for real GDP this year, all goods and services are multiplied by the prices as at 2012 to get the monetary value of goods and services for the present year.

Base year prices are referred to as constant prices when calculating real GDP.

7 0
3 years ago
A flood damages a home that is in a community in early stages of participation in NFIP, but are not yet considered a participati
stepladder [879]

Answer:

$10,000

Explanation:

The National Flood Insurance Program (NFIP) allows property owners to buy insurance that protects them from damage caused by floods. But the NFIP is available only in participating communities.

In this case, the owner will receive up to $10,000 because it is covered under the Emergency Plan.

7 0
2 years ago
In what type of economy do people officials determine the 3 basic economic questions?
Reil [10]
Most likely a Command economy.
4 0
3 years ago
Above is a trading profit and loss with the balance sheet question
Maslowich
If that writing could be a little bit more clear I promise I would help. Could you type it up and send it so I can properly see it to do it.
8 0
3 years ago
Other questions:
  • Set up an amortization schedule for a $25000 loan to be repaid in equal installment at the end of each 3 years. The interest rat
    14·1 answer
  • Which of the following is the most important factor in successful new-product introduction? Group of answer choices ​The new pro
    5·2 answers
  • The strength of the economy depends on the balance of production and consumption of goods and services true or false
    8·2 answers
  • How to estimate elasticity?
    13·1 answer
  • 3. Why are many resources allocated through markets?
    7·1 answer
  • If government cuts taxes. A. after tax income should increase shifting AD to the right to a higher equilibrium level of output B
    9·1 answer
  • When a business establishes a web-site and begins to allow customers to place orders online without ever coming into their store
    5·1 answer
  • Which term refers to the interest the Federal Reserve Bank (Fed) charges banks for loans? open‑market sale fractional banking re
    6·1 answer
  • construct a quadriteral PQRS, given that QR=4.5cm PS=5.5cm,RScm5cm and diagonalPR=5.5cmand diagonal SQ=7cm​
    14·1 answer
  • A 2 percent increase in the price of milk causes a 6 percent reduction in the quantity demanded of chocolate syrup. What is the
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!