Answer:
The interest rate is higher in the US.
Explanation:
The forward price is calculated using the following formula,
F= S ( 1+Rd / 1+Rf)^t
where,
- F = Forward rate
- S = Spot rate
- Rd = Nominal interest rate in domestic market
- Rf = Nominal interest rate in foreign market
- t = time in years
We consider that the domestic market is the US and the domestic currency is the USD. Thus, it is a direct quote where 1 EUR = 1.3 USD
The forward price ER is more than the Sport ER only when the interest rate in domestic market is more than the interest rate in foreign market and as a result, the value of domestic currency against a foreign currency in the forward market depreciates.
We can see this by the following example,
Say Spot rate is $1.3 per 1 EUR and the interest rate in US is 10% while that in Euro zone is 5%. When we calculate the forward ER we will see that 1 EUR will buy us more USD in forward (more than 1.3 USD)
F= 1.3 * (1.1 / 1.05)^1 => $1.362 PER 1EUR
Answer:
A. Workers are trained to do all or most of the jobs in the unit
Explanation:
A self-managed team is a group of employees that's responsible and accountable for all or most aspects of producing a product or delivering a service. Traditional organizational structures assign tasks to employees depending on their specialist skills or the functional department within which they work
Answer:
Yes, she can deduct the unamortized balance of the refinanced loan points in the year of sale.
Explanation:
In Refinanced mortgage, you have to deduct the points equally over the life of the loan. This also goes for loans you take out to buy a second home or investment property.
EXAMPLE: If you paid $2,000 in points and will make 360 payments on a 30-year mortgage, you can deduct $66.72 [($2,000/360) x 12] each year, assuming you make 12 mortgage payments in a year.
Answer:
Explanation:
We were told to Identify the following costs as a product cost or a period cost for a magazine publisher:
PRODUCT COST are all the incurred cost during production of a service/ product till it's available to get to the consumer. This could be direct labor as well as over head.
PERIOD COST: are cost that cannot be associated to production cost such as rents, utilities cost that are required for the business.
a). SALES SALARIES
Identification: product cost
b. PAPER USED FOR THE MAGAZINE
Identification: product cost
c. MAINTENANCE ON PRINTING MACHINE
Identification: product cost
d) DEPRECIATION EXPENSES—corporate headquarters
Identification: Period cost