Answer: The correct answer:
A. Managing monetary policy.
Answer: Behavior
Explanation: Consumer Behaviour is the way consumers respond to the purchase of a certain products and services, consumer behaviour is affected by various factors such as PRICE, QUALITY, QUANTITY,INCOME etc.
Certain consumers have specific interest in certain products or services, due to brand loyalty which has emanated from the consistent quality and other product features which they have enjoyed in such products.
<u>Answer:</u> Speculation.
<u>Explanation:</u>
Carlos tries to make a profit through exchange rates. Carlos is a speculator who tries to make profit through market fluctuations. The strategy is a risky strategy as the speculators based on their knowledge about the market make decisions accordingly.
Carlos is planning to receive the appreciated value of British Pounds so that he receives the same amount as mentioned in the contract but makes profit out of exchange rates and books FX profits in his books of accounts.
Answer:
See below.
Explanation:
For a)
The money multiplier or the credit multiplier can be calculated as follows,
Money multiplier = 1 / reserve ratio
Multiplier = 1 / 0.12 = 8.33 times
For b)
For a negative $80 million change by the Fed there will be a total change in the economy of 80 * 8.33 = $666.4 million.
A -80 million change will contract money supply by $666.4 million in the economy.
For c)
This can be calculated by dividing the target by the money multiplier.
So to achieve a change of $500m the Fed will expand the money supply by
= 500 / 8.33 = $60.02m.
Hope that helps.
