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
adelina 88 [10]
3 years ago
8

Assume that the interest rate on borrowings in India is 1 percent while the interest rate on bank deposits in a U.S. bank is 6 p

ercent. John, an active currency trader, borrows in Japanese yen, converts the money into U.S. dollars and deposits it in a U.S. bank. The speculative element of John's carry trade is that its success is based upon his belief that
Multiple Choice

there will be no adverse movement in exchange rates or interest rates.

liquidity is the key factor in determining interest rates.

increasing money supply will not drive inflation.

hedging insures a company against foreign exchange risks.

spot exchange rates are more favorable than forward exchange rates.
Business
2 answers:
Marysya12 [62]3 years ago
7 0

Answer:

  • there will be no adverse movement in exchange rates or interest rates.

Explanation:

John's best speculative element is that everything would remain in his favor; especially the exchange rates and there interest rates.

Assuming after his transaction there is a sudden negative or adverse effects on the interest rate from 6 percent to 1 percent for US deposit and a decline in the USD/Japanese Yen exchange rate he <u>would be faced with great loses.</u>

FrozenT [24]3 years ago
6 0

Answer:

There will be no adverse movement in the exchange rates or interest rates

Explanation:

John's speculative element is that there will be no adverse movement in the exchange rates or interest rates . that is why he borrowed in Japanese Yen and converted it to U.S dollars and also deposited it into a U.S bank with the hope of earning a high interest rate on his money.

If the interest rates on bank Deposits in the U.S drops from 6% and the interest rate on borrowings in India increases above 1% with an adverse change in the exchange rate between Japanese Yen and U.S dollar John would lose alot of his money

You might be interested in
What are the market trends and growth of netflix​
Llana [10]
Netflix's products are targeted towards the lower-middle class and up, specifically targeted to people (or households) with income levels of $30,000 and up. In addition, Netflix offers movie and TV titles that appeal to many racial/ethnic groups with its array of foreign and international films.

A great example of market saturation is Netflix. While new streaming services are in the introduction and growth stages, the market originator has reached its saturation point.

In the fourth quarter of 2019, Netflix accounted for 40% of the market. By Q3 2020, it was at 36%. Below is where each major streaming service stands in market share in the US as of Q4 2020, according to data from Antenna: Netflix — 34%
4 0
3 years ago
Zahra is an employee at colorz inc. she loves gossiping about her colleagues during office hours, which causes her to receive a
Sphinxa [80]
<span>Zahra is an employee at colorz inc. she loves gossiping about her colleagues during office hours, which causes her to receive a reprimand by her supervisor, dan. a few days later, dan fires gunther, another subordinate, from work for a similar reason. the employees reporting to dan are most likely to conclude he demonstrates a lack of outcome fairness in dealing with employees who gossip at work.

</span><span>Outcome fairness is a judgment that the consequences given to employees are just.</span>
3 0
3 years ago
Which of the following is absolutely necessary for successful implementation and operation of MRP? (I) accurate inventory record
frez [133]

Answer:

(A) I, II, and IV only

Explanation:

The Material Requirements Planning MRP is used to calculate tha materials needed for production. It may be done by software but it can be done without any technological tool.

The most important information for MRP is about the available inventory for future production, in this way the company will know what materials are needed for future production. To provide the materials on time it is necessary to know the master schedules of production, making sure that the supplies will be ready on time for manufacturing process. Finally, the accurate Bills of materials are used as a check list to verify that there is not any pending component for the production process. Even when the MRP may include costs, it is not a vital component for the system and some companies can have MRP without including costs.

4 0
3 years ago
David Blehert and his research team captured 117 healthy bats to study in the laboratory and divided them into four groups. Grou
Lelechka [254]

Answer: a) the type of exposure to Geomyces destructans; whether the bats became sick with WNS

Explanation: The independent variable refers to the variables employed by the experimenter to use as a tool to observe changes in the dependent variable. In an experimental study, the independent variables are usually the different controls adopted for the experiment. In the scenario above, the independent variable is the type of exposure to Geomyces destructans which each of the groups are exposed to. These variation in control in which the different groups are exposed to may result in different response within the group which is the change in WNS. These response due to exposure to different control is called the dependent variable.

6 0
3 years ago
Who LIkes MY Pfp?? <br> Also Free PTs<br> Luv YAll
Anton [14]

Answer:

me its amazing wonderful delightful and miraculous.

8 0
3 years ago
Read 2 more answers
Other questions:
  • According to the cost-push theory , what is responsible for inflation?
    7·2 answers
  • Estimating Components of both WACC and DDM Analysts estimate the cost of debt capital for Abbott Laboratories (NYSE: ABT) is 2.1
    12·1 answer
  • Question:
    10·1 answer
  • Develop a list of the main arguments, pro and con, that could be presented at a public hearing on the matter by members of each
    9·1 answer
  • Recruiting and retaining capable employees A. B) is important because the quality of an organization's people is always an essen
    10·1 answer
  • Based on the following information, calculate the variable overhead rate variance. Actual variable overhead cost $15,500 Actual
    7·1 answer
  • The study by economists Cox and Alm found that the 2006 pre-tax income of the richest fifth of U.S. households is a. 5 times the
    12·1 answer
  • 6 years ago paid 490,000 using 40 year straight line depreciation, what is the value
    11·1 answer
  • According to McClelland's research, the need for achievement is
    12·1 answer
  • A $23 credit to sales was posted as a $230 credit. By what amount is the sales account in error?
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!