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crimeas [40]
3 years ago
14

Classified ads are printed only in newspapers. True False

Business
2 answers:
Korvikt [17]3 years ago
8 0
The answer is false, the guy above me is a very correct mans
katovenus [111]3 years ago
4 0
The answer is false i hope this helps :3
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Assume that interest rate parity exists and will continue to exist. The U.S. interest rate was 4% while the Singapore interest r
allochka39001 [22]

Answer:

<u>discount</u>, <u>the size of the discount increased </u>

Explanation:

As per the interest rate parity theory (IRPT) , the difference between forward and spot rate of a currency is equal to the difference between their respective interest rates.

Forward rate for SGD i.e Singapore dollar means the US Dollars which can be purchased by 1 SGD i.e US Dollars per SGD.

Also, the currency whose interest rate is higher would be at a forward discount whereas the currency with lower interest rate would be at a forward premium. This effect mitigates the possibility of any arbitrage gain.

\frac{FR}{SR} = \frac{1\ +\ I_{USD} }{1\ +\ I_{SGD} }

I_{USD} = Interest rate in USA

I_{SGD} = Interest rate in Singapore

As per the given information, FR = SR × \frac{(1\ +\ .04)}{(1\ +\ .05)} = Spot Rate × 0.99

when interest rate in Singapore rises and falls in USA.. Let's assume, new interest rates being 3% in USA and 6% in Singapore.

Forward Rate would be, Spot Rate × \frac{(1\ +\ .03)}{(1\ +\ .06)} = Spot rate × 0.972

Thus, it can be seen that SGD was at a forward discount at the beginning and with increase in it's interest rates and reduction in US Dollar interest rates, SGD forward discount increased.

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pav-90 [236]

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Explanation:

A possible opportunity cost when you spend $100 on a pair of sneakers is: Not being able to spend that $100 on some furniture for your house. A possible opportunity cost when you spend $100 on a pair of sneakers is: Not being able to spend that $100 on some furniture for your house.

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<span>The fact that Kellog is increases its promotion expenditure to counteract competitive responses means that </span>Kellogg's is in the​ maturity stage of the product life cycle. The maturity stage us the third stage of the product life cycle, and comes a<span>fter the </span>Introduction<span> and </span>Growth<span> stages.
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