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Basile [38]
3 years ago
11

Suppose that the pound is pegged to gold at £20 per ounce and the dollar is pegged to gold at $35 per ounce. This implies an exc

hange rate of $1.75 per pound. If the current market exchange rate is $1.80 per pound, how would you take advantage of this situation?
Business
1 answer:
AfilCa [17]3 years ago
4 0

Answer:

The exchange rate implies in exchange rate of $1.75 but current market exchange rate is $1.80 which means that the dollar is undervalued and pound is over valued in the market.

We will buy Dollar in the market and use these dollars to buy gold and then sell this gold in Euros

E.G Buy a $1000 from the market for £555(10,000*1/1.8)

After that we can by 28.5(1000/35) ounces of gold from that and sell the gold for £571(20*28.5). This way we make a profit of £16 (571-555) without taking any risk.

Explanation:

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A group of executives attended a meeting in which the CFO was the attendee with the most senior ranking. When the meeting began,
givi [52]

Answer:

Group think bias

Explanation:

Groupthink bias occurs when people believe in something because other people believe in it. It is when everyone comes to the same conclusion concerning a matter.

In the meeting everyone agreed with the CEO, this is an instance of groupthink.

Anchoring bias is when a person's decision is overly anchored on an initial information given when making a decision.

Confirmation bias is when a person arrives at a conclusion in line with their beliefs.

Availability bias is basing decisions on past instances that comes to mind when making the decision.

Hindsight bias occurs when people over estimate their abilities to predict how an event would have turned out in hindsight.

7 0
3 years ago
11. John rates Peter an average worker, “excellent” on all his performance evaluations. The rest of staff suspects that Peter ge
Blizzard [7]

Considering the situation described in the question, if the allegations were accurate, the rating error the staff identified is known as the "Similarity Bias" error.

  • This is because the Similarity Bias is a type of rating error where the rater rates a person or candidate higher than he deserves because they shared or have some similarities like having played for the same football team or attended the same school.

  • There are other types of rating bias that do not apply to this situation.

  • These include Halo bias and Leniency bias.

Hence in this case the correct answer is "Similarity Bias"

Learn more here: brainly.com/question/14467377

6 0
2 years ago
PLEASE HELP ME!!
dimaraw [331]
I'm almost 100% positive the answer is C.
8 0
3 years ago
Read 2 more answers
The South Division of Wiig Company reported the following data for the current year. Sales $3,018,000 Variable costs 1,979,808 C
hram777 [196]

Answer:

(a) Compute the return on investment (ROI) for the current year.

Current ROI 8.72%

Explanation:

Sales 3,018,000

- Variable Cost 1,979,808

- fixed cost 594,600

Operating Income 443,592

Operating assets 5,087,200

Return on Investment

\frac{operating \: Income}{Average \: Assets}

ROI = 433,592/5,087,200 = 0.087197 = 8.72%

5 0
3 years ago
The IT (Information Technology) implementation project is bogging down and falling behind schedule. The department heads are com
Tomtit [17]

Answer:

Crashing

Explanation:

The scenario perfectly explains 'Crashing', which is employed by project managers when deadlines of projects come closer. If a project is to be completed within the schedule in order to achieve it's intended benefits but with all the existing resources it's not becoming possible to have it completed on time, in such cases additional resources are brought in for completing the project or if securing of additional resources isn't possible, then under crashing, requirements or scope of the project could be reduced after taking major stakeholder's agreement. The purpose of crashing is to achieve maximum reductions in time with incurring minimum additional cost.

4 0
3 years ago
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