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Degger [83]
3 years ago
15

If inflation in the U.S. is projected at 3% annually for the next 5years and at 7% annually in Turkey for the same time period,

and Lira/Dollar spot rate (L/$) is currently equal to 5.6702 then the exact relative PPP value of the spot rate (L/$) five years from now is given by:
Business
1 answer:
GrogVix [38]3 years ago
5 0

Answer:

6.86011 Turkish liras per US dollar

Explanation:

US's inflation 3% for the next 3 years

Turkey's inflation 7% for the next 3 years

current Lira/Dollar spot rate (L/$) = 5.6702 (liras per dollar)

  • inflation rate US = (1 + 0.03)⁵ = 1.159274
  • inflation rate Turkey = (1 + 0.07)⁵ = 1.402552

difference = 1.402552 / 1.159274 = 1.20985 x current spot rate = 1.20985 x 5.6702 = 6.86011

Since the Turkish inflation rate is higher than the American inflation rate, then the Turkish lira will depreciate faster than the US dollar.

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An experienced employee who supervises, coaches, and guides lower-level employees by introducing them to the right people and ge
torisob [31]

Answer:

Mentor

Explanation:

The mentor is the person who has knowledge, experience, skills and he or she is able to guide, motivate, gives the training, supervise the lower skill employees so that they can perfect in their work.

But for motivating, guiding the employees we need to appoint the right people who belong from organizational sponsor so that the lower level employees could able to accomplish their tasks so that the overall objective of the company could be accomplished.

3 0
3 years ago
Why might a bank be willing to borrow funds from other banks at a higher rate than the rate at which it can borrow from the fed?
liberstina [14]
Because when a bank borrows money from the Fed it has to out toward collateral. Central banks in turn will want extra regulation, depending on the banks rep. As well as banks borrow too frequently from the Fed, resulting in the Fed restricting the ability to borrow in the future.
hope this helps!
3 0
3 years ago
A mutual fund that invests in stocks that provide a predictable source of dividend income and the potential for dollar appreciat
Umnica [9.8K]

Answer: Equity funds

Explanation: This type of mutual fund invest in stocks,the risk of losing your investment is high in this type of mutual fund,these funds are usually expected to grow faster than fixed income funds and money market funds.

There are different types of Equity funds which includes mid-income stocks,value stocks,high-cap stocks,growth stocks and income stocks.

The potential for Dollar appreciation is high with these types of stocks with predictable source of dividend.

5 0
3 years ago
Suppose an economy is modeled with a production possibilities frontier or curve (PPF) for butter (vertical axis) vs. guns (horiz
Nonamiya [84]

Answer: B - a general improvement in technology affecting production of all goods

Explanation: The Production Possibility Frontier is a curve that shows the two combination of goods an economy can produce when all its factors of production are efficiently used.

Technological progress shifts the curve outward, away from the origin as more output would be produced using the same combination of factor inputs.

Shifting of resources from butter to gun would lead to movements along the curve as more gun would be produced and less butter.

Pacifism becoming less popular which increases gun production, would cause movement along the curve.

Increase in consumer desire for butter increase the amount of butter produced . This would generate a movement along the curve

4 0
3 years ago
Which of the following best states the main difference between a monopoly and an oligopoly?
MrMuchimi

Answer:

C:Oligopolies involve more than one company while monopolies involve only one.

Explanation:

A monopoly is a market structure with one supplier serving a very large market. In a monopoly, a single firm sells to many buyers. The product or service offered by a monopoly has no close substitutes. Customers have no choice but to buy from the only firm providing the product or service. Monopolies may result from government policy or very restrictive barriers of entry.

An oligopoly is a market structure where very few firms dominated the market . It when four or five firms control the majority market share of a very large market. There could be other firms with very little market share. Firms in an oligopoly market may sell homogeneous or differentiated products. The few firms dominating the industry collaborate to profit from the market.

8 0
3 years ago
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