What is an example of a governmental influence ?

Assume that the interest rate on borrowings in south korea is 1 percent, but the interest rate on deposits in british banks is 7

Vikentia [17]

The trader involved is in carry trade.

Further Explanation:

Carry Trade: It is defined as a strategy that is used in trading which involves borrowing money at a lower rate of interest and investing in an asset that gives a higher rate of return. It involves borrowing money in a currency that is having a low rate of interest and convert the borrowed sum of money into other currency. The amount is then placed in a deposit in the currency that offers a high-interest rate. It invests in the assets like bonds, stocks, real estate, or commodities that are designated in the other currency.

The two risks that are involved in carry trade are the risk of decline in the price of the assets in which investment is made and exchange risk. This is common in the Foreign exchange market.

Therefore, the trader is involved in carry trade.

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Answer details:

Grade: High School

Subject: Economics

Chapter: Types of trade

Keywords: the interest rate, South Korea, 1 percent, deposits in British banks, 7 percent, a trader, 1 million South Korean won, British pounds, deposits in a British bank, carry trade, trade involved in, FX market.

5 0

3 years ago

Consider the following simple economy that produces only three goods: 2009 (Base Year) 2017 Product Quantity Price Quantity Pr

Oxana [17]

Answer:

The answer is $6680

Explanation:

To calculate the Real GDP we use prices from the base year.

GDP = 100x40 + 80x11 + 20x90 = $6680

8 0

3 years ago

In the for-profit business world, decisions to spend money must pass a "cost versus benefit" test, but for nonprofit arts organi

Zinaida [17]

The cost versus benefit test will not act as a good factor to measure tangible achievement.

Explanation:

Most of the Non-profit organization has a focus on welfare activities. The benefits can be influenced only by the subjective fulfillment of benefits. Executive members of all trusts are not able to calculate the benefits attained through welfare operations. Such a parameter system of identifying the beneficiaries' prospects of end-users is known as Intangible achievement.

The tangible achievement always lies in the status of invisible movements of each welfare operations. But each step of inducing the effects of cost versus benefit test does not suit to provide the effective to identify the tangible achievements.

3 0

3 years ago

If your employer offers a retirement plan, don’t participate in it. Don’t bother to set target dates for achieving your financia

CaHeK987 [17]

Answer: Please refer to Explanation

Explanation:

If your employer offers a retirement plan, don’t participate in it. Yes.

Having a retirement plan with your employer especially one in which you are a 100% vested is a drain on your income. It might have benefits in future when you retire but if you want to engage in financial planning, you need to have access to every penny and that includes the money going to the retirement plan.

Don’t bother to set target dates for achieving your financial goals. No

Setting a target date for various amounts in your financial goals enables you to work towards them with more determination. It is important to set target dates.

Pay credit card balances in full each month. Yes

Paying your credit card balance in full every month helps you avoid interest accruing as well as increasing your credit score. It is therefore very important to pay off the balance in full every month which will be easier as long as you charge things to it that you can afford.

Start saving early in life and save throughout your life. Yes.

The more you save the more you have to invest. This is why you should start saving early if you want to engage in financial planning. You need to formulate the determination to save every time. And don't just save for saving's case, save to invest.

3 0

3 years ago

Using the marine corps planning process (mcpp) to produce an operations order (opord) is an example of which level of risk manag

S_A_V [24]

Answer:

Deliberate level of risk management

Explanation:

Risk management can be defined as a process whereby situations or circumstances that can pose or cause risks to a firm or management operations is properly identified.

Risk management also involves taking appropriate measures to prevent such risks from occurring or taking place.

Risk management also involves controlling or mitigating against any for of risks that may occur in the future.

Risk management includes the following steps:

a) Identify the risks

b) Assess the risks

c) Make decisions

d) Place appropriate controls in place

e) Carry out adequate supervision.

Operational Risk Management has 3 levels and they are:

1) Deliberate Risk Management.

2) Time Critical Risk Management.

3) Strategic Risk Management.

In the question above, using the marine corps planning process (mcpp) to produce an operations order (opord) is an example of Deliberate level of risk management.

Deliberate level of risk management can be defined as the risk management level that is carried out or well executed amongst a group of personnels.

It is the level of risk management that is carried out when we are trying to execute or carry out a particular project.

4 0

3 years ago