Answer:
C) 1.6
Explanation:
The real exchange rate is calculated by multiplying the nominal exchange rate by the price level of the countries:
nominal exchange rate = 2 US dollars per British pound = $2/£
real exchange rate = $2/£ x (US price level / British price level) = $2/£ x 0.8 = $1.6/£
Answer:
c. make an accurate diagnosis of what is causing the problem
Explanation:
The manager of the fast-food restaurant should understand the underlying problem first. Working on the assumption that it's because of a competitor marketing campaign may not give the desired results. A customer's preference may change due to many reasons.
The manager should make an accurate diagnosis of the problem first. With a precise reason as to why customers as fleeing, then he can develop a counter-strategy. Retaining the current member of the crew will not reverse the situation. Reducing prices may affect profitability, which is not the desired result. With low prices, some customers may question the quality of the breakfast.
Answer: Interest rate risk
Explanation:
Interest rate risk is described as the potential for investment loss which result from a change in interest rates. The increase in interest rate declines tell value if a bond or other fixed-income investment, the change that occurs in these bond price is known as duration. Generally, it is the risk that arises for bond owners from fluctuating interest rates. The interest rate risk of a bond depends on how sensitive it's price is to interest rate changes in the market