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Levart [38]
3 years ago
14

Assume a central bank exchanges its currency for other foreign currencies in the foreign exchange market, but does not adjust fo

r the resulting change in the money supply. This is an example of:
Business
1 answer:
yarga [219]3 years ago
5 0

Answer:

nonsterilized intervention

Explanation:

Based on the information provided within the question it can be said that this scenario is a direct example of nonsterilized intervention. This term refers to when central banks attempt to influence the exchange rates by refusing to buy or sell assets or currencies which in term allows the money supply to stay the same .

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Write an essay with the topic: Information logistics system is one of the major topics of interest to manufacturing and logistic
Harrizon [31]

Answer:

it 8s easy you need to divide the question in to points and write a paragraph on them

6 0
3 years ago
Which of the following services will be provided by a full-service broker but not by a discount broker?
Triss [41]

Answer:

a. l and III

Explanation:

A full service brokers are the types of brokers that will conduct the trade of securities on the behalf of their clients.

Their services typically provided for investors who do not have enough knowledge in economics to be involved in trading. So, they prefers a hands off approach and let other people to manage their portfolio.

Because of this, the clients of do not have the ability to purchase or sell a certain stock at request. They have to rely on the brokers to handle the complex issues within investing activities and trust them completely.

7 0
3 years ago
An investor in Treasury securities expects inflation to be 1.6% in Year 1, 3.05% in Year 2, and 3.85% each year thereafter. Assu
mixer [17]

Answer:

The difference between two securities is 0.89%.

Explanation:

Inflation premium for the next three and five years:

Inflation premium (3) = (1.6% + 3.05% + 3.85%) ÷ 3

                                  = 2.83%

Inflation premium (5) = (1.6% + 3.05% + 3.85% + 3.85% + 3.85%) ÷ 5

                                  = 3.24%

Real risk-free rate = 2.35%

Since default premium and liquidity premium are zero on treasury bonds, we can now solve for the maturity risk premium:

Three-year Treasury securities = Real risk-free rate + Inflation premium (3) + MRP(3)

6.80% = 2.35% + 2.83% + MRP(3)

MRP (3) = 1.62%

Similarly,

5-year Treasury securities = Real risk-free rate + Inflation premium (5) + MRP(5)

8.10% = 2.35% + 3.24% + MRP(3)

MRP (5) = 2.51%

Thus,

MRP5 - MRP3 = 2.51% - 1.62%

                         = 0.89%

Therefore, the difference between two securities is 0.89%.

4 0
3 years ago
What is the term that describes what a business has to pay to correct defective products?
vagabundo [1.1K]
I believe the correct answer from the choices listed above is option A. The term <span> that describes what a business has to pay to correct defective products would be the cost of quality. Hope this answers the question. Have a nice day.</span>
7 0
3 years ago
Read 2 more answers
The local electronics store is offering a promotion​ "1-year: same as​ cash," meaning that you can buy a tv​ now, and wait a yea
shtirl [24]

Answer:

$961.54

Explanation:

To calculate the real price of the TV you would have to determine the present value of the TV's price. The future price of the TV is $1,000 and your discount rate is 4% annual (the same as your bank), so the present value of the TV =

present value = future value / (1 + rate) = $1,000 / 1.04 = $961.54

3 0
3 years ago
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