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Rasek [7]
4 years ago
6

Suppose that the annual rate of returns on dollar deposits equals 2% and the rate of return on euro deposits is 1%. Furthermore,

assume that expected exchange rate in a year is $1.1=1 euro and the current exchange rate is $1.08=1 euro. Should you invest in dollar deposits or euro deposits?
Business
1 answer:
Oliga [24]4 years ago
5 0

Answer:

I should invest in dollar deposits.

Explanation:

Current exchange rate is 1 euro = $1.08

Assuming I have y euro, the equivalent in dollar is $1.08y

Rate of return on dollar deposit = 2% = 0.02

Return on investment = $1.08y + (0.02 × $1.08y) = $1.08y + $0.0216y = $1.1016y

Rate of return on euro deposit = 1% = 0.01

Return on investment = y euro + (0.01 × y euro) = y euro + 0.01 y euro = 1.01y euro = 1.01y × $1.08 = $1.0908y

I should invest in dollar deposits because the return on investment is greater than euro deposits.

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Answer:

The correct answer is KISS Rule.

Explanation:

The KISS principle states that most systems work better if they remain simple than if they become complex; Therefore, simplicity should be maintained as a key design objective, and any unnecessary complexity should be avoided.

This principle is registered for the first time in the United States Navy in 1960, and is mainly attributed to Kelly Johnson, chief engineer at Lockheed Skunk Works.

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3 years ago
. Licensing occurs when: a. A licensee allows a licensor to use its intellectual property for a fee. b. A professional league pa
DedPeter [7]

Answer:

c. The owner of an intellectual property grants its use to a league in exchange for a fee.

Explanation:

Licensing occurs when: owner of an intellectual property grants its use to a league in exchange for a fee.

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3 years ago
Read 2 more answers
Catherine is married and a mother of two children. She has decided to forego her own career to stay home with her children until
Taya2010 [7]

Answer:

Traditional Women

Explanation:

The reason is that the women who take the responsibility of taking care of their house and children represents the traditional class of women. These women are also known as house wife in our society. In this question, Catherine takes the role and responsibility because she takes care of her family and house related issues which matches the role and responsibilities of a traditional women so this is the Traditional women is the right answer.

5 0
4 years ago
If a schedule c taxpayer does not bring the tax professional documentation to prove income
nekit [7.7K]
If a schedule c taxpayer does not bring the documents to prove the income, one cannot claim the Earned Income Tax Credit. Also the return cannot be prepared by the tax professional however one can make a form 1099 MISC to indicate their own income and lastly they should give other proofs that the income is accurate so that the paper for return can have the sign needed.
Download docx
4 0
4 years ago
Presented below is the partial bond discount amortization schedule for Cullumber Corp. Cullumber uses the effective-interest met
Kazeer [188]

Answer:

Journal entry is given below

Explanation:

To record the payment of interest and the discount amortization at the end of period 1 we should debit the Interest expense and credit cash and discount

DATA

Interest expense in year 1 = $38,936

Interest to be paid = $36,450

Discount amortization = $2,486

Entry                                         DEBIT              CREDIT

Bond interest expense       $38,936

Cash                                                                  $36,450    

Discount on bonds                                           $2,486

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3 years ago
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