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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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The Federal reserve is acting as a lender of last resort when its lends money to banks and other financial institutions because no one else will/

<h3>What is the Federal Reserve?</h3>

It is the United states central banking system that is responsible for the nation's monetary policy and regulation of the supply of money and interest rates.

One of the role of Federal reserve is to act as a lender of last resort when its lends money to banks and other financial institutions because no one else will.

Therefore, the Option A is correct.

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From the information given, first and foremost, we need to realise that only the building in this case will be depreciated due to the fact that land is considered to be a non depreciable asset.

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The​ bring your own​ device phenomenon has raised​ _____________ concerns for companies.
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Costs that can be eliminated in whole or in part if a particular business segment is discontinued are called:
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