1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
sergejj [24]
3 years ago
8

One-year interest rates are currently 2.50% in the United States and 3.70% in Great Britain. The current spot rate between the p

ound and dollar is $1.9000/£. What is the expected spot rate in one year if the international Fisher effect holds?
Business
1 answer:
DochEvi [55]3 years ago
3 0

Answer:

$1.8780/£

Explanation:

According to the international Fisher effect, the relationship between the interest rate and the exchange rate between two countries A and B, after one year, is:

F=\frac{1+r_A}{1+r_B}*C

Where F is the future exchange rate, r is the interest rate, and C is the current exchange rate.

If the US has an interest rate of 2.50%, the UK has a rate pf 3.70% and the current exchange rate is $1.9000/£, the spot rate in one year will be:

F=\frac{1+0.0250}{1+0.037}*1.9000\\F = \$1.8780/\pounds

In one year, the spot rate will be $1.8780/£.

You might be interested in
The Allowance for Bad Debts account has a debit balance of $ 9 comma 000$9,000 before the adjusting entry for bad debts expense.
Yakvenalex [24]

Answer:

the amount of the adjustment in the Allowance for

Bad Debts​ account  $3.000

Explanation:

Initial Balance  

Allowance for Uncollectible Accounts  $ 9.000

END Balance  

Allowance for Uncollectible Accounts  $ 12.000

The adjustment entry in the accountig will be

Bad debt expense  $ 3.000  

Allowance for Uncollectible Accounts   $ 3.000

3 0
3 years ago
The Country Music Hall of Fame is considering increasing admission prices to increase gross revenue. If the price of admission r
Kitty [74]

Answer:

1

Explanation:

Elasticity of demand measures the responsiveness of quantity demanded to changes in price.

Elasticity of demand = percentage change in quantity demanded / percentage change in price

Percentage change in quantity demanded = (30/20) - 1 = 0.5 = 50%

Percentage change in price = (1500 / 3000) - 1 = 0.5 = 50%

50% / 50% = 1

I hope my answer helps you

3 0
3 years ago
The Arkansas Company makes and sells a product called Product K. Each unit of Product K sells for $39 dollars and has a unit var
ioda

Answer:

$36,020.40

Explanation:

The computation of cash balance is shown below:-

Excess of cash receipts over disbursement = Beginning cash balance + Cash receipts - Cash disbursement

= $64,500 + $1,302,200 - $1,310,000

= $1,366,700 - $1,310,000

= $56,700

Interest = X × 0.02

Cash balance at end = Excess of cash receipts over disbursement + Borrowing - Interest

$92,000 = $56,700 + X - 0.02x

$92,000 - $56,700 = 0.98x

X = $35,300 ÷ 0.98

= $36,020.40

7 0
2 years ago
Businesses that engage in ultrahazardous activities are strictly liable for any injuries.
3241004551 [841]
I think the answer is true.
7 0
2 years ago
Minerals are structurally simple, inorganic substances that exist as groups of one or more of the same atoms. In chemistry, what
olga_2 [115]

Answer:

The substance does not contain carbon .

Explanation:

Usually, an inorganic substance is a type of chemical substance that loses bonds with carbon-hydrogen, that is, a product that is not biological.

  • The difference, though, is not defined and accepted, and experts have varying views on the matter.
  • An inorganic compound, any material which generally combines two or more chemical compounds other than carbon, almost always in clear and obvious percentages.

5 0
3 years ago
Read 2 more answers
Other questions:
  • The probability of incurring bankruptcy increases as a firm's debt/equity ratio decreases. false true
    10·1 answer
  • 1. Explain who the Lemon Law protects.
    7·1 answer
  • Dazzle, Inc. produces beads for jewelry making use. The following information summarizes production operations for June. The jou
    8·1 answer
  • State and local governments in the United States share the costs of criminal justice by making ________ primarily a local functi
    11·1 answer
  • Which of these individuals is classified as unemployed? ( pick more then 1 )
    11·2 answers
  • The risk-free rate is 4%, the market risk premium is 8%, and the market return is 12%. Stock Y's beta is 1.85 and the standard d
    12·1 answer
  • Which of the following statements about entrepreneurs is FALSE? A. Entrepreneurs are people who start a new business. B. Entrepr
    5·1 answer
  • What is the highest expected return these bonds could​ have? At the​ time, similar maturity Treasuries had a yield of 0.89 %. Co
    10·2 answers
  • Match each type of tax with an example of its use.
    7·2 answers
  • increases in output and increases in the inflation rate have been linked to part 2 a. discretionary government spending. b. high
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!