Answer:
The futures price of the pound for a one-year contract be to prevent arbitrage opportunities would be $1.63/BP.
Explanation:
In order to calculate the the futures price of the pound for a one-year contract be to prevent arbitrage opportunities we would have to make the following calculation:
futures price of the pound for a one-year contract=Spot rate*(1+United Kingdom risk free rate)/(1+United States risk free rate)
futures price of the pound for a one-year contract=$1.60/BP*(1+6%)/(1+4%)
futures price of the pound for a one-year contract=$1.63/BP
The futures price of the pound for a one-year contract be to prevent arbitrage opportunities would be $1.63/BP.
Answer:
Net New Borrowing is 10,000
Explanation:
Cash available for capital spending = Operating cash flow - Interest Paid - Dividends Paid - Change in Net Working Capital + New Equity Issued
= 117,000 - 60,000 - 53,000 - 21,000 + 29,000
= 12,000
Net new borrowing = Net Capital Spending - Cash available for capital spending
= 22,000 - 12,000 = 10,000
The net delivered cost of purchases is $270920
<u>Explanation:</u>
The given data in the question is as follows:
purchases = $256900, freight charges paid = $36870, purchase returns and allowances = $13690, purchase discounts = $9160
The net delivered cost of purchases is calculated as follows:
Purchases plus frieght charges minus purchase returns and allowances and minus purchase discounts
Purchases = $256900
add: freight charges paid = $36870
less: purchase returns and allowances = $13690
less: purchase discounts = $9160
net delivered cost = $270920
Therefore, the correct answer is $270920
Answer:
The answer is B:
The aggregate injections equal aggregate withdrawals S+T+M = I+G+X.
Explanation:
In the circular flow of income, Keynesian equilibrium obtains when The aggregate injections equal aggregate withdrawals S+T+M = I+G+X.
Where S = Saving
T = Taxes
Imports = (M)
I = Investments
G = Government spending
X = Exports
An equilibrium is approached when there is a balance between the savings, taxes and imports and investments, government spendings and exports.
Example of a situation in which a surplus of a product leads to decreased prices is food staples in America.
An example of a situation in which a shortage leads to increased prices is increasing prices of fuel due to a lack of fossil fuel availability.
<h3 /><h3>What is refers as a surplus of any product?</h3>
Surplus of any product refers to a situation when the availability of goods is in more quantity whereas the demands for the products are sufficient which makes it decrease in the prices of products.
Food staples like frozen foods and vegetables along with eggs are considered a surplus product in America.
The prices of fossil fuels are increasing in the world as they are obtained through fossils that are not available in abundance which creates high demands for daily consumption and results in shortage.
Learn more about the shortage, here:
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