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Savatey [412]
3 years ago
15

In the foreign exchange market, the price of one nation's currency in terms of the currency of another nation is known as the

Business
1 answer:
Andrei [34K]3 years ago
4 0
Exchange rate :) 
I had to double-check that right quick, sorry!
You might be interested in
The price of a certain property increased by 10% in the first year, decreased by 20% in the second year, and increased by 25% in
Fynjy0 [20]

Answer:

Let suppose the value of property is 100 dollars currently.

The price of a certain property increased by 10% in the first year, means the value of property at this point is (100 *1.1) 110 dollars.

In the second year the value of property decreases by 20% mean the value of property at this point is (110*0.80) 88 dollars, that is 80% of previous value determine.

In the third year the value of property increases by 25% mean the value of property at this point is (88*1.25) 110 dollars that is 25% more than previous value determine.

So in second year the value in dollars is 88 dollars.

3 0
3 years ago
10) A worker performs a repetitive assembly task at a workbench to assemble products. Each product consists of 25 components. Va
erik [133]

Answer:

a.9.313hr

b.116.4%

c.104.0%

Explanation:

(a) Hstd= 75(7.45)/60 = 558.75/60 = 9.313 hr

(b) Ew= 9.313/8.0 = 1.164 = 116.4%

(c) Time worked = 480 – 13 = 467 min

Tc= (467 min)/(75 pc) = 6.227 min/pc

Tn= 7.45/(1 + 0.15) = 6.478 min/pc

Pw= 6.478/6.227 = 1.040 = 104.0%

6 0
3 years ago
CIRP. Jason Smith is a foreign exchange trader with Citibank. He notices the following quotes. Spot exchange rate SFr1.6627/$ Si
Zinaida [17]

Answer:

Answer explained below

Explanation:

A.

For six months, rSFr => 1.50% and r$ => 1.75%.

Since the exchange rate is in SFr/$ terms, the appropriate expression for the interest rate parity relation is

F/S => [ (1 +  rSFr ) / ( 1 + r$) ]

then we can also say

F/S *( 1 + r$) => (1 +  rSFr )

Now Left side => F/S *( 1 + r$) => [ ( 1 + 6.558) / ( + 1.6627) ] * (1 +0.0175)

Left side => 1.0133

and Right side =>  (1 +  rSFr ) => 1.0150

Since the left and right sides are not equal, IRP is not holding.

B and C.

Since IRP is not holding, there is an arbitrage possibility.

As 1.0133 < 1.0150,

we can say that the EuroSFr quote is more than what it should be as per the quotes for the other three variables. And, we can also say that the Euro$ quote is less than what it should be as per the quotes for the other three variables. Therefore, the arbitrage strategy should be based on borrowing in the Euro$ market and lending in the SFr market. The steps are as as follows. -

Borrow $1000000 for six-months at 3.5% per year and then we will pay back

=> $1000000 * (1 + 0.0175) => $1,017,500 six months later.

Convert $1000000 to SFr at the spot rate to get SFr 1662700.

Lend SFr 1662700 for six-months at 3% per year. Will get back

=> SFr1662700 * (1 + 0.0150) => SFr 1,687,641 six months later.

Sell SFr 1687641 six months forward. The transaction will be contracted as of the current date but delivery and settlement will only take place six months later. So, sixmonths later exchange

SFr 1,687,641 for => SFr 1687641 ⁄ SFr 1.6558/$ => $1,019,230.

The arbitrage profit six months later is 1019230 - 1017500 = $1,730

6 0
3 years ago
The Central Limit Theorem: states that the average range can be used as a proxy for the standard deviation. states that the aver
pickupchik [31]

The correct answer is - allows managers to use the normal distribution as the basis for building some control charts.

<u>Explanation:</u>

It is the theorem that allows inference from a random sample. It says that:

• The sample mean will likely be towards the population mean within a margin of error

• The margin of error is a multiple of the standard error, which is the standard deviation divided by the square root of the sample size. The multiple is determined by the degree of statistical confidence you’re looking for, and the normal deviate corresponding to that — 1.65 for 90% confidence, 1.96 for 95% confidence, etc.

4 0
3 years ago
Consider three closed economies. In the first economy, households spend $0.50 of each additional dollar they earn and save the r
aleksklad [387]

Answer:

b. In the first economy, the spending multiplier is greater than in the second economy. In the third economy, the spending multiplier is undefined

Explanation:

This can be easily understood by going through some calculations in a spending multiplier formula.

WORKINGS

The formula for Spending Multiplier = \frac{1}{MPS}

Spending Multiplier

Economy 1: Multiplier = \frac{1}{0.5} = 2

Economy 2: Multiplier = \frac{1}{1} = 1

Economy 3: Multiplier = \frac{1}{0} = undefined

Note: MPS can be abbreviated as Marginal propensity to save

As we can see here economy 1 is 50% greater than economy 2 and economy 3 is undefined because they spend whole dollar they earn additionally.

On behalf of the above calculations,  option B is a perfect match!

4 0
3 years ago
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