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shusha [124]
2 years ago
14

Assume that interest rate parity does not hold, and Japanese investors are benefiting from covered interest arbitrage due to hig

h interest rates in the U.S. Which of the following forces should result from this covered interest arbitrage activity? a. downward pressure on the yen's forward rate b. downward pressure on the yen's interest rate c. downward pressure on the yen's spot rate d. upward pressure on the U.S. interest rate
Social Studies
1 answer:
Nadya [2.5K]2 years ago
5 0

Answer:

c. downward pressure on the yen's spot rate

Explanation:

When a currency crisis takes place, it is because there is a strong drop in the value of a nation's currency. At the same time, this drop in value harms the economy since it gives place to unstableness in exchange rates, indicating that one unit of a determined currency is not useful to buy the same amount of another as in the past. This causes downward pressure on the spot rate of the most valuable currency.

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Answer: d) encourage product trial

Explanation:

Product trial is defined as the technique in which offering are made to consumers on temporary basis so that they can have information about the marketed product or service.This also tends the consumer to buy the product or service by testing product, checking samples, involving in offers ans scheme etc.

Other option are incorrect because awareness and expectation is not spread through temporary offerings. Re-seller support and improving the demand are not the technique for promoting products.

Thus, the correct option is option(d).

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2 years ago
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B to conquer and control lands

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3 years ago
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dybincka [34]
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What were the articles of Confederation? Why has the government under the articles of confederation been judged a failure? Expla
Scorpion4ik [409]

The Articles of the Confederation contained 13 articles that ruled the 13 Colonies recently liberated from the British Crown. They were the basis to the Federal Constitution that would replace it a few years later.

In summary, the articles expressed:

1. The Confederation name as The United States of America;

2. The sovereignty of each Confederation State;

3. The compromise of each State with liberty;

4. Ensure the perpetual friendship between the States;

5. The presence of one State Representative in the Congress;

6. The Central Government would have the right to a war declaration, after mutual decision;

7. States would be able to promote their army;

8. National expenditures would be shared between all States;

9. The formation of a National Congress;

10. The rules of the Congress recesses;

11. The possibility for the Canadian Province of Quebec to join the Confederation;

12. The existence of war debts before the Articles;

13. The perpetuity of the declaration.

Unfortunately, for the Confederation States, there was a lack of power, as this declaration didn’t make them strong enough to develop by themselves, needing a centralized government to reinforce the Confederation non-dissolution. An example is the Shay’s Rebellion, which exposed the state's weakness.

Therefore economic and trade matters were ruled by each state, which brought more difficulties for their development. After the Constitutional Convention, held in Philadelphia in 1787, it was decided that a Central Government would be formed, and the head of the State would be the Head of the Nation.  

The Articles of the Confederation ruled the 13 Colonies from July 1776, until Novembre 1777. The Federal Constitution was adopted on March 4, 1789.

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2 years ago
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