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Len [333]
2 years ago
5

Suppose that the equilibrium exchange rate (Euro/$) is .90 and the The Federal Reserve decides to fix the exchange rate at .70.

What will the Federal Reserve have to do in order to maintain this fixed exchange rate
Business
1 answer:
adoni [48]2 years ago
3 0

Answer:

C. The Federal Reserve will need to have official reserves of euros to purchase dollars in the foreign exchange market.

Explanation:

Federal Reserve required to have a euros reserves as it can applied it also at the case when the exchange rate is move upward or downward

For the other things, the fed could restrict the supply with respect to the dollar in the foreign exchange market in order to get it stable that opposed with euro

Therefore the option c is correct

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You own one futures contract on gold that you purchased at a quoted price of 1,448.5. The current price quote is 1,405.5. The co
Inessa [10]

Answer:

d. -$4,300.00

Explanation:

Calculation for What is your current profit or loss on this investment

Using this formula

Current profit or loss = Contract size*(Current price quote-Quoted price )

Let plug in the formula

Current profit or loss = 100 *($1,405.5-$1,448.5)

Current profit or loss = 100 *-$43

Current loss = -$4,300.00

Therefore your current loss on this investment will be -$4,300.00

6 0
2 years ago
When Raoul Welsh is evaluating the construction industry in terms of interest rates, employment cycles, and the rate of new home
Mice21 [21]

Answer:

FALSE                                

Explanation:

Microeconomics refers to the branch of economics which examines the actions of persons and businesses in making choices about limited resource distribution and the relationships between these entities and industries.

Although microeconomics concentrates on companies and people, macroeconomics focuses on overall economic exercise, talking about issues of development, interest rates, and joblessness, and governmental policies on such concerns.

Thus, from the above we can conclude that the given statement is false.

7 0
3 years ago
Foreign investors have preferred to invest in the united states except for which of the following reasons?
Solnce55 [7]
One of the main hinders of foreign investors on investing in the United States is that the U.S. is less stringent in regulating securities markets. This can be blamed on the rapid increase of trading volume competition which negates the market regulation.
4 0
3 years ago
Suppose market forces outside of the control of the Chinese government are causing the price of Chinese yuan in terms of Japanes
pochemuha

Answer:

A. file a pegging application with one of the three international currency-management agencies.

8 0
3 years ago
2. Zach filed his individual federal tax return for the year ending December 31, 2018 on April 15, 2019 and he owed $25,000. As
jeyben [28]

Answer:

$26,125

Explanation:

[($25,000 x 0.005) x 9 + $25,000]

=$26,125

Zach owe $26,125 as of December 31, 2019 because he did not fail to file - he failed to pay. Hence he owes the 0.5% per month or part of a month failure to pay penalty plus the already outstanding tax amount of $25,000 that he owed.

4 0
3 years ago
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