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Angelina_Jolie [31]
3 years ago
14

Under purchasing power parity, the future spot exchange rate is a function of the initial spot rate in equilibrium and a. the in

flation differential. b. the forward discount or premium. c. the income differential. d. none of the above
Business
1 answer:
kirza4 [7]3 years ago
6 0

Answer:

The correct answer is a) the inflation differential.

Explanation:

Inflation differential is the difference we can find between two countries in exchange rates. The inflation differential can produce losses for the company if, in the country you want to buy, there is a big difference in your exchange rate, since this raises the prices of the product. As a result, the company has a loss; it can also happen if It is a case of exports.

If the inflation differential is maintained for an extended period, it can cause loss of competitiveness, since the profit margin of the products would be affected.

<em>I hope this information can help you.</em>

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Why must real options have positive​ value? ​(Select all the choices that​ apply.)
yarga [219]

Answer:

A. Real options must have positive value becasue they are only exercised when doing so would increase the value of the investment.

B. If exercisung the real option would reduce value, managers ca allow the option to go unexercised.

D, Having the real option but not the obligation to act is valuabale.

Explanation:

Because real option are options or choices made available to managers of a firm concerning investment their choices are meant to bring about a positive growth and return on the investments.

So if any of the choices presented to these managers are going to reduce the values or have other negative impacts on the investment and its value, then the option which is the real option or ideal option canbe forgone.

Cheers.  

5 0
3 years ago
Which resource management activity identifies and verifies that personnel?
Sliva [168]

Resource management effectively develops and uses the resources of the organization. Credentialing recognizes and confirms the personnel.

<h3>What is credentialing?</h3>

Credentialing is a process that involves the documentation of the individual of the organization or the corporation so that the true and fair authentication and qualification of the person associated are ensured.

It is an essential function of the management that confirms the skills and requirements of the person that will be an asset to the organization. The qualifications of the person required will be established and can be approved.

Therefore, credentialing is used to determine and affirm.

Learn more about credentialing here:

brainly.com/question/12670472

#SPJ4

8 0
2 years ago
The proper order of the following steps in the accounting cycle is prepare unadjusted trial balance, journalize transactions, po
photoshop1234 [79]

Answer:

<em>The Accounting Cycle is as follows:</em>

<em>1. Transactions are analyzed and recorded in the journal. </em>

<em>2. Transactions are posted to the ledger.</em>

<em>3. An unadjusted trial balance is prepared. </em>

<em>4. Adjustment data are asssembled and analyzed. </em>

<em>5. An optional end-of-period spreadsheet is prepared. </em>

<em>6. Adjusting entries are journalized and posted to the ledger. </em>

<em>7. An adjusted trial balance is prepared. </em>

<em>8. Financial statements are prepared. </em>

<em>9. Closing entries are journalized and posted to the ledger. </em>

<em>10. A post-closing trial balance is prepared. </em>

<em />

8 0
3 years ago
The required reserve ratio is 0.05. If the Federal Reserve buys​ $1,000,000 worth of bonds from a bond dealer who has her accoun
Radda [10]

Missing information:

total deposits in bank XYZ = $4,000,000

total reserves = $3,800,000

Answer:

the required reserve = $250,000

excess reserves = $4,550,000

Explanation:

required reserve ratio = 5%

the Fed buys $1,000,000 worth of bonds

the $1,000,000 are deposited entirely in bank XYZ

total checkable deposits will increase to $5,000,000

the required reserve = $5,000,000 x 5% = $250,000

excess reserves = total checkable deposits - total loans - required reserves = $5,000,000 - $200,000 - $250,000 = $4,550,000

5 0
3 years ago
Farmer Ted planted 200 acres in wheat this year. The weather has been perfect and he expects to harvest a record crop within the
mina [271]

Answer:

d. Transactions exposure.

Explanation:

Transactions exposure -

It is the level of uncertainty involved in a business in the international trade face .

It is the risk which currency exchange rates would fluctuate after the firm has taken a financial obligation .

The high level of vulnerability to shift the exchange rates can lead to the loss of the major capital for the international business .

Hence from the information of the question , the correct answer is  d. Transactions exposure .

5 0
3 years ago
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