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Butoxors [25]
2 years ago
5

Assume that interest rate parity holds and that 90-day risk-free securities yield 6% in the United States and 6.5% in Germany. I

n the spot market, 1 euro equals $1.35. What is the 90-day forward rate
Business
1 answer:
Marianna [84]2 years ago
3 0

Answer: 1.356345

Explanation:

Based on the scenario and information provided in the question, the 90-day forward rate will be calculated as:

= Spot Rate × (1 + Germany Interest Rate) / (1 + United States Interest Rate)

= 1.35 × (1 + 6.5%) / (1 + 6%)

= 1.35 × (1 + 0.065) / (1 + 0.06)

= 1.35 × 1.065/1.06

= 1.35 × 1.0047

= 1.356345

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Use the table to indicate which description characterizes economies of scale and which characterizes economies of scope.
kenny6666 [7]

Answer and Explanation:

The economics of scope refers to the total cost production cost i.e to be averaged for the various type of goods

While on the other hand, the economics of scale refers to the benefit of the cost than occurs when there is a higher production level at a time

Based on this, the classification is as follows

1, Economics of scale as the output rises that declines the LAC so automatically it goes downward

2. economics of scope

3 0
3 years ago
1.3.2 Quiz: Income and Career
sukhopar [10]

Answer:

a

Explanation:

4 0
3 years ago
In the long​ run, a perfectly competitive market will A.supply whatever amount consumers demand at a price determined by the min
In-s [12.5K]

Answer: Option (A) is correct.

Explanation:

Correct Option: A.supply whatever amount consumers demand at a price determined by the minimum point on the typical​ firm's average total cost curve.

In the long run, equilibrium price of a perfectly competitive firm implies that there is no economic profit for the firm. This situation occur when the marginal cost is equal to the average total cost.

The firm is break even when the price is equal to the minimum point of average total cost of the firm. So, there is no possibility of economic profit for the firm.

5 0
3 years ago
Bramble Corp. incurs the following costs to produce 13000 units of a subcomponent: Direct materials $10920 Direct labor 14690 Va
Mumz [18]

Answer:

$4,850

Explanation:

The computation is shown below:

Total cost when the production is 13,000 units

Direct materials $10,920

Direct labor $14,690

Variable overhead $16,380

Total $41,900

And, the other case

Their new cost on supplier offer is

= $2.85 × 13,000 units

= $37,050

In the case when the order is accepted So the net income would increased by

= $41,900 - $37,050

= $4,850

7 0
3 years ago
Alt Corp. issues 3,000 shares of $10 par value common stock at $14 per share. When the transaction is recorded, credits are made
storchak [24]

Answer:

Credits are made to Common Stock $30,000 and Paid in capital in excess of Par value $12,000

Explanation:

The journal entry is shown below;

Cash $42,000 (3,000 shares at $14)

         To Common Stock $30,000 (3,000 shares at $10)

         To Paid in capital in excess of par value $12,000 (3,000 shares at $4)

(Being issuance of the common stock is recorded)

Here cash is debited as it increased the assets and credited the common stock & paid in capital as it also increased the stockholder equity

8 0
2 years ago
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