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KIM [24]
3 years ago
7

The government of darnia allows its currency to nominally float freely against other currencies, but the government has the righ

t to intervene, buying and selling currency, if it believes that the currency has deviated too far from its fair value. what darnia is doing is called a _____ float.
Business
1 answer:
ch4aika [34]3 years ago
5 0

Darnia is doing is called a <u>"dirty" </u>float.


A dirty float is a floating exchange rate where a nation's national bank infrequently intercedes to alter the course or the pace of progress of a nation's money esteem. In many occurrences, the national bank in a dirty float system goes about as a cradle against an outside monetary stun before its belongings wind up troublesome to the local economy. A dirty float is otherwise called a "managed float."

A dirty float system isn't viewed as a genuine skimming swapping scale in light of the fact that, hypothetically, genuine floating rate systems don't take into consideration intervention.

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When a firm plans to issue bonds, it creates a(n) ______, which is a legal document that explains its obligations to bondholders
kobusy [5.1K]
When a firm plans to issue bonds, it creates a(n) -prime-, which is a legal document that explains its obligations to bondholders?
6 0
3 years ago
What is the tax-exempt equivalent yield on a 9% bond yield given a marginal tax rate of 28%?
grigory [225]

The tax-exempt is 6.48 %

<h3>How to calculate the tax-exempt ?</h3>

The bond yield is 9%, let's divide 9% by 100

= 9/100

= 0.09

The marginal tax rate is 28%, let's divide 28% by 100

= 28/100

= 0.28

Therefore the tax-exempt can be calculated as follows

0.09(1-0.28) × 100

= 0.09(0.72) × 100

= 0.0648 × 100

= 6.48

Hence the tax-exempt is 6.48%

Read more on tax-exempt here

brainly.com/question/5540202?referrer=searchResults

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5 0
2 years ago
Suppose there was a large increase in net exports. if the fed wanted to stabilize output, it could?
laila [671]

If the FED want to stabilize output then FED has to decrease the money supply if the net exports were increased.

Given that there was a large increase in net exports.

We are required to advise the FED about the work he should do to stabilize the output.

The increase in exports shows that there had huge amount of money in the economy. So to stabilize the output FED has to decrease the output and to decrease the output FED has to decrease the money supply.

FED can decrease the money supply in various ways as under:

  1. Increase in interest rate.
  2. Selling of government securities.

There are many more ways to decrease the money supply. When the money supply decreases the people in the country may not be able to produce more goods and the production of goods decreases.

Hence if the FED want to stabilize output then FED has to decrease the money supply if the net exports were increased.

Learn more about money supply at brainly.com/question/3625390

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3 0
2 years ago
Suppose that lenders want to receive a real rate of interest of 5 percent and that they expect inflation to remain steady at 2 p
Helga [31]

Answer:

7%

Explanation:

nominal interest rate = real interest rate + expected inflation rate

nominal interest rate = 5% + 2% = 7%

Usually the nominal interest rate has four major components:

  1. real interest rate: the net interest rate received by a lender or an investor
  2. inflation rate: the general rise in the prices of goods and services, as inflation increases, the purchasing power of a currency decreases
  3. liquidity risk premium: usually collateralized loans include a liquidity risk premium since not all assets can be easily converted to cash.
  4. credit risk: possibility of the borrower defaulting the loan

7 0
3 years ago
Which one of the following statements is correct? A) Cash management primarily involves determining the optimal level of liquidi
Anastasy [175]

Answer:  B) The longer the cash cycle, the more likely a company will need external financing.

Explanation:

The cash cycle refers to the amount of time it would take a company to be able to convert the goods that it has in inventory to actual cash. If this cycle is long, then the company will have less cash than it needs because it is not raising cash fast enough.

To be able to fund operations therefore, the company might be forced to seek external financing.

3 0
4 years ago
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