Answer:
Since the investor is from the US and purchases a hotel in Swiss Alps for CHF 35,000,000, the investor will have to pay interest in the currency CHF.
In order to hedge the currency risk the investor can go for SWAPS where he will recieve the interest in CHF and pay in USD.
Cash flow:
Notional amount = $35,000,000
exchange rate = CHF 1 / USD
Bid price is 5.25% for CHF hence when an investor goes into swap contract then he will get 5.25%. Similarly for USD when investor pays in USD then he will have to pay the ask rate of 8.85%.
The investor will pay 8.85% interest rate in USD and get the 5.25% interest rate in CHF. This interest can be used to pay the interest on loan
Answer:
All macroeconomic goals are achieved.
Explanation:
All macroeconomic goals should be achieved in the long term macro equilibrium.
On the long term macro equilibrium, real GDP should be equal to potential GDP. This is all theoretical since there is no real possibility that the potential GDP is ever equal to the real GDP. There will always be at least one economic actor that is not being 100% efficient, so potential GDP is unreachable.
Answer:
regressive
Explanation:
A regressive tax is basically a tax whose rate increases as your income decreases. Generally you do not need to increase the marginal tax rate of lower income levels, all you need to do is have a flat tax that taxes everyone with the same amount. E.g. everyone pays $2,000 as income taxes. $2,000 per person represents 10% of the first household's income, but it only represents 2.7% of the fourth household's income.
On the other hand, progressive taxes increase as the income level of the taxpayers increases.
Answer:
B. He could take deep breaths and then respond nonjudgmentally is the correct answer.
Explanation:
The idea that many media products are digital files of ones and zeros sold in physical containers, is known as: atoms to bits
