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nalin [4]
3 years ago
9

Assume the following exchange rates: $1 = NZ$3, NZ$1 = MXP2, and $1 = MXP7. Given this information, as you and others perform tr

iangular arbitrage, the exchange rate of the New Zealand dollar (NZ) with respect to the Mexican peso (MXP) should ____, and the exchange rate of the Mexican peso (MXP) with respect to the U.S. dollar should ____. a. appreciate; depreciate b. remain stable; appreciate c. appreciate; appreciate d. depreciate; depreciate
Business
1 answer:
Vika [28.1K]3 years ago
7 0

Answer:

c. Appreciate; Appreciate

Explanation:

Triangular arbitrage is the act of taking an opportunity resulting from a pricing discrepancy among three different currencies when the currency's exchange rates do not exactly match up

This cases are very rare and for a quite short period of time so there are very few traders who takes the advantange of them.

Lets study th given cases here:

A) NZ dollar Versus Mexican Peso

The exchage rate is 1NZ$= 2 Mexican Pesos (MXP)

But if we apply the triangular arbitrage:

1 NZ dollar = 0.3333 US$

and we know tha 1 US$= 7 Mexican Pesos (MXP

Then 1 NZ dollar = 0.3333* 7 MXP= 2.333 MXP

So the NZ dollar appreciates

B) MXP Versus U$S

The exchage rate is 1 MXP= (1/7) U$S

But if we apply the triangular arbitrage:

1 MXP = 0.5 NZ

and we know tha 1 NZ= 0.333 US$

Then 1 MXP = 0.5* 0.333 U$S= 0.166 U$S

So the MXP appreciates

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Shonda Corporation Schedule of Cost of Goods Manufactured For the Year Ended December 31, 2017 (in thousands) Direct materials:
kotykmax [81]

Answer:

Manufacturing costs incurred during 2017= $769,000

Explanation:

Giving the following information:

Schedule of Cost of Goods Manufactured For the Year Ended December 31, 2017 (in thousands):

Direct materials:

Beginning inventory, Jan. 1, 2017= $135,000

Purchases of direct materials= 260,000

Cost of direct materials available for use= 395,000

Ending inventory, Dec. 31, 2017= 72,000

Direct materials used $323,000

Direct manufacturing labor 210,000

Manufacturing overhead costs:

Indirect manufacturing labor= $95,000

Plant utilities= 19,000

Depreciation—plant, building, and equipment= 43,000

Plant insurance= 2,000

Repairs and maintenance—plant= 17,000

Equipment leasing costs= 60,000

Total manufacturing overhead costs 236,000

Manufacturing costs incurred during 2017= direct materials used + direct labor + manufacturin overhead= 323000 + 210000 + 236000= $769,000

3 0
3 years ago
Regardless of how departments like​ accounting, engineering,​ finance, and marketing function in an​ organization, they are all
Nataly_w [17]
I think ur answer is C
3 0
3 years ago
Your friend says to you, "America is one of the fairest countries in the world because we have a democracy, and we are able to v
professor190 [17]

Answer and explanation:

Democracy is the state in which individuals of a community make decisions collectively being the interest of most people prioritized. A pure form of democracy is difficult to find even in countries that highly promote equal rights such as the United States.

The Democracy Index is a composite that measures democracies in 167 countries scoring them from 1 to 10 (10 is the highest grade). In 2019, The U.S. was positioned in the 25th place in the list of most democratic countries. <em>Norway </em>is placed in the first place followed by <em>Iceland</em>.

In such a case, <em>we should recommend our friend to take a look at the Democracy Index where he or she will find out that the U.S. is not one of the fairest nations in the world. Its government functioning and political participation are aspects where the U.S. needs improvement.</em>

6 0
3 years ago
Kelly selected a home and submitted an offer to the seller. Multiple Choice The seller must accept her offer. Her offer must hav
Lena [83]

Answer:

The seller may reject the offer and choose to provide a counteroffer.

Explanation:

In a free-market environment, a seller has the option to accept or decline an offer for what he is selling, in this case, a house. Furthermore, he can propose a counteroffer to see if the buyer is able and willing to pay more for that house. Taking this simple rules into account, the seller may reject Kelly’s offer if he wants and can choose to make a counteroffer.  

4 0
2 years ago
Fairfax Pizza borrowed 745,000 dollars to build a new restaurant for 745,000 dollars. The decision to spend 745,000 dollars on t
EastWind [94]

Answer:

Financing decision

Explanation:

Financing decision is concerned with borrowing and allocating funds for investments.

As such, the decision to borrowed 745,000 dollars and use the fund to build a new restaurant for 745,000 dollars is a financing decision.

Capital Budgeting decision-making process involves plans around any long term capital expenditures whose returns (cash inflows and outflow) are expected to be earned in more than a year.

8 0
3 years ago
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