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Aneli [31]
2 years ago
8

refers to a system under which a country's currency is nominally allowed to float freely against other currencies, but in which

the government will intervene, buying and selling currency, if it believes that the currency has deviated too far from its fair value.
Business
1 answer:
Temka [501]2 years ago
8 0

Answer:

A Dirty Float

Explanation:

A dirty float or managed float, refers to a floating exchange rate system operated by a country's central bank where there are occasional interventions in the foreign excange markets to influence the demand and supply with the intention of curbing perceived volatilities in the currency.

As stated in the question, the intervention of the Central Bank will usually occur when it believes that the currency has deviated too far from its fair value.

The dirty float system is a buffer against external economic influences that may want to disrupt the foreign exchange market in a country.

Actually, from 1946-1971, many industrialized nations around the world operated the fixed exchange rate system or the Bretton Woods agreement but this changed August 15, 1971, when President Richard Nixon decided to exit the United States from this system and till date most nations that intend to protect their domestic markets and industries against external foreign influences have adopted the dirty float exchange system.

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The significant event at the conclusion of each phase is called _____. Group of answer choices tasks deliverable milestone seque
PtichkaEL [24]

The significant event at the conclusion of each phase is called a milestone.

  • A milestone in your life is an important occasion. A turning point frequently ushers in a fresh chapter. For instance, your high school graduation was a significant event in your life. A roadside signpost that indicates the distance to a specific point is referred to as a milestone.
  • Birthdays celebrated at milestone ages are those extra-special ages that call for more than simply a card and cake. Important childhood milestones that typically require a sizable party and an especially thoughtful present include a first birthday and turning 13 years old.
  • A crucial moment or stage in the existence, development, or similar of a person, a country, etc. Her career reached a turning point when she was hired as a supervisor.

Thus this is the answer.

To learn more about milestone in life, refer:brainly.com/question/25605883

#SPJ4

7 0
2 years ago
Andrew Industries is contemplating issuing a ​-year bond with a coupon rate of ​(annual coupon​ payments) and a face value of .
zepelin [54]

Answer:

The numbers are missing, so I looked for a similar question to fill in the blanks:    

<em>Andrew Industries is contemplating issuing a 30​-year bond with a coupon rate of 7.13% ​(annual coupon​ payments) and a face value of $1,000. Andrew believes it can get a rating of A from Standard​& Poor's.​ However, due to recent financial difficulties at the​ company, Standard​ & Poor's is warning that it may downgrade Andrew​ Industries' bonds to BBB. Yields on​ A-rated, long-term bonds are currently 6.43%​, and yields on​ BBB-rated bonds are 6.84%. </em>

a. What is the price of the bond if Andrew Industries maintains the A rating for the bond​ issue?

if the YTM is 6.43%, then the market price will be:

0.0643 = {71.30 + [(1,000 - M)/30]}/ [(1,000 + M)/2]

0.0643 x [(1,000 + M)/2] = 71.30 + [(1,000 - M)/30]

0.0643 x (500 + 0.5M) = 71.30 + 33.33 - 0.03333M

32.15 + 0.03215M = 104.63 - 0.03333M

0.06548M = 72.48

M = 72.48 / 0.06548 = $1,106.90

b. What will be the price of the bond if it is​ downgraded?

if the YTM is 6.84%, then the market price will be:

0.0684 = {71.30 + [(1,000 - M)/30]}/ [(1,000 + M)/2]

0.0684 x [(1,000 + M)/2] = 71.30 + [(1,000 - M)/30]

0.0684 x (500 + 0.5M) = 71.30 + 33.33 - 0.03333M

34.20 + 0.0342M = 104.63 - 0.03333M

0.06753M = 70.43

M = 70.43 / 0.06753 = $1,042.94

6 0
2 years ago
The Seattle Corporation has been presented with an investment opportunity which will yield cash flows of $30,000 per year in Yea
Sergio [31]

Answer:

payback period = 4.86 years

Explanation:

given data

cash flows year 1 = $30,000 per year

cash flows year 5 = $35,000 per year

cash flows year 10 = $40,000 per year

investment cost = $150,000

to find out

payback period for this investment

solution

we get here accumulated inflows will be

accumulated inflows year 4 =  $30,000 × 4

accumulated inflows year 4 = $120,000

and

accumulated inflows year 5 = $120,000 + $35,000 = $155,000

and Initial investment = $150,000

so payback period will be

payback period = 4 years + (150,000 - 120,000)  ÷ 35,000 × 365 days

payback period = 4 years and 313 days

payback period = 4.86 years

3 0
3 years ago
One of the major purpose of a pre-trial hearing is to
Contact [7]

The purpose is to resolve some of the legal issues before the trial begins.

7 0
3 years ago
Read 2 more answers
Elroy Corporation repurchased 4,000 shares of its own stock for $30 per share. The stock has a par of $10 per share. A month lat
Firdavs [7]

Answer:

Here, selling price is $32 and the cost of treasury stock is $30, Hence selling price is higher than cost.

Following Journal Entries are to be passed:

(a) Treasury Stock (4,000 shares × $30) A/c   Dr.   $120,000

To Cash A/c                                                                               $120,000

(b) Cash (900 Shares × Selling Price $32) A/c   Dr.  $28,800

To Treasury Stock (900 shares × Cost 30)                               $27,000

To  Paid in Capital from Treasury Stock (Difference)                $1,800

 

7 0
3 years ago
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