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hichkok12 [17]
4 years ago
13

the spot price of the euro is currently $1.30. The 1-year futures price is $1.35. Is the interest rate higher in the United Stat

es or the euro zone?
Business
2 answers:
yarga [219]4 years ago
8 0

Answer: no. Interest rate in euro zone is lower than interest rate in the united state

Explanation:

when interest rate rises, foreign investors will be attracted which will increase the demand for domestic currency. an increase is demand for domestic currency will increase the exchange rate level which is an appreciation of the home currency.

spot rate is $1.30 and future price is $1.35, the exchange rate increase which tells us that Home currency depreciated. A decrease in Interest rate increases Exchange rate level. Since exchange rate level is expected to increase we can assume that the interest rate of Euro zone is less than the interest rate of united states

Sonbull [250]4 years ago
4 0

Answer:

The interest rate is higher in the euro zone.

Explanation:

In foreign exchange, high interest rates attract foreign investors, appreciating a currency. On the other hand, low interest rates result in a depreciation of the currency.

In this case, the euro appreciated and the dollar depreciated, that means that the interest rate of the euro zone is higher than the interest rate in the US.

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Which of the following manufacturing costs is an indirect cost of producing a product? amissions for sales personnel b.memory ch
Akimi4 [234]

Answer:

The answers are the c) oil lubricants used for factory machinery and the d) hourly wage of an assembly worker

Explanation:

Indirect manufacturing costs are the costs that a factory must cover for the manufacture of a product, apart from materials and direct labor. They relate to the entire operation of the company and overcome the manufacturing process of a specific product. They are also found as general manufacturing costs.

In the case of response c), factory supplies are all those materials that are consumed within the factory but are not part of the raw materials. This includes oils, greases, lubricants, stationery, etc.

In the case of response d), indirect labor costs are those that make the operation of the company possible but cannot be assigned to a particular product. For example, the salary value of a manager who manages the operation of the entire company and not only in a product line.

8 0
3 years ago
In the case of a positive relationship between two variables, all else remaining constant:
olasank [31]
The answer is true, it is because if two variables are having the same relationship having to have a positive effect, then both will move in the same direction in which both will produce a constant relationship, so the answer is true as all else remains constant.
5 0
3 years ago
Help with this question
ruslelena [56]

Answer: The answer is C Monitoring the budget

6 0
3 years ago
Read 2 more answers
Eagle Company, a partnership, had a short-term capital loss of $10,000 during the current year. Aaron, who owns 25% of Eagle, wi
Lubov Fominskaja [6]

Answer:

True

Explanation:

Partnerships are not taxed as individual entities, they work as pass through entities where the partners must report any gains or losses on their personal income filings.

In this case, since Aaron owns 25% of Eagle Company, any loss or gain that Eagle company has will be passed to Aaron in the same percentage. Since Eagle had a $10,000 short term capital loss, $2,500 ($10,000 x 25%) of the loss will pass to Aaron.

5 0
3 years ago
Use the information below to answer questions 4-7. Drake Company's income statement for the most recent year appears below:
Colt1911 [192]

Answer:

(A) $731,250

Explanation:

The formula to compute the break-even point in sales dollars is shown below:

= (Fixed expenses or Fixed cost) ÷ (Contribution ratio)

where,

Contribution ratio = Contribution margin ÷ sales

                             = $208,000 ÷ $650,000

                             = 0.32 or 32%

And, the fixed expense is $234,000

Now put the values to the above formula

So, the value would equal to

= $234,000 ÷ 32%

= $731,250

6 0
4 years ago
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