Suppose the exchange rate is 90 yen per US dollar and the united states wants to keep the exchange rate at a target rate of 90 yen per US dollar. if the demand for US dollars , the fed <u>sells dollars to lower the exchange rate.</u>
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When rate of exchange changes, the worth of 1 currency can go up whereas the worth of the opposite currency can go down. Once the worth of a currency will increase, it's aforementioned to own appreciated. On the opposite hand, once the worth of a currency decreases, it's aforementioned to own depreciated.
When a country's rate of exchange will increase relative to a different country's, the value of its merchandise and services will increase. Ultimately, this will decrease that country's exports and increase imports.
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Answer:
High inflation is costly, but they disagree about the costs of moderate inflation.
Explanation:
Inflation can be defined as the persistence rise in the price of goods and services. Inflation leads to a decline in the value of money this means that individuals may no longer to buy enough thing with the same amount of money which is previously enough to buy the things needed. The rise in the price of goods will equally mean inability to purchase the normal quantity of goods.
The main causes of inflation are demand pull and cost push. Demand pull occurs when manufacturers increase their prices due to the increase in demand for their products. Cost push occurs when manufacturers increase the prices of their products because the costs have also increased.
Answer:
Calculate the dirty price.
Here, coupon interest is compounded semiannually. Hence, divide coupon rate by 2.
Dirty Price = Bond Clean Price + Accrued Interest
Dirty Price = Bond Clean Price +(Face Value X Coupon Rate/2 X Day Count/ Total Days
Dirty price = 1026 + (1000 x 6.6%/2 x 74/183)
Dirty price = $1,039.34
Nazerhy deposits $8,000 in a certificate of deposit. the annual interest rate is 6%, and the interest will be compounded quarterly. The certificate worth 10 years is $14,555.17.
<h3>What do you mean by deposit?</h3>
- A deposit is the act of giving money (or money equivalents) to an organization, most frequently a bank or other financial institution.
- The deposit is a credit for the party that made it (individually or as a group), and it can be refunded (withdrawn) in line with the conditions set forth at the time of deposit, transferred to another party, or applied to a future purchase.
- The primary source of funding for banks typically deposits.
<h3>What is the interest rate?</h3>
- The amount of interest due each period expressed as a percentage of the amount lent, deposited, or borrowed is known as an interest rate (called the principal sum).
- The total interest on a loaned or borrowed sum is determined by the principal amount, the interest rate, the frequency of compounding, and the period of time the loan, deposit, or borrowing took place.
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