A soft peg exchange rate may create additional volatility as exchange rate markets try to anticipate when and how the government will intervene.
<h3>What is an exchange rate?</h3>
An exchange rate refers to the value of a country's currency in relation to another currency. This entails the rate at which a currency will be exchanged for another.
It is the value of one currency for the purpose of conversion to another.
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There are producers, trade industries, and service industries.
Answer:
$10,000 million
Explanation:
The computation of the change in the money supply is shown below:
At 10%
Required reserves= deposits × required reserve ratio
= $1000 million × 10%
= $100 million
Now
The total amount of money supply is
New deposits= 1 ÷ required rate of return x deposits
= 1 ÷ 10% × $1000 million
= 10 x $1000
= $10,000 million
At 5%
As we know that
Required reserves= deposits × required reserve ratio
= $1000 million × 5%
= $50 million
Now
The total amount of money supply is
New deposits= 1 ÷ required rate of return x deposits
= 1 ÷ 5% × $1000 million
= 20 x $1000
= $20,000 million
Now change in supply is
= $20,000 million -$10,000 million
= $10,000 million
Answer:
the value of the cash flow in year 5 is -$48
Explanation:
Cash flow in year 5 include a capital repayment and interest expense.This can be determined by constructing an amortization schedule from the data given.
The first step in constructing the amortization schedule is to find the Yield to Maturity.
Pv = -$600
Pmt = $600 × 8% = $48
P/yr = 1
N = 10
Fv = $600
YTM = ?
Using a Financial Calculator the Yield to Maturity is 8%.
then to determine the cash flow for year 5, we need the coupon amount (interest) and the amount of capital repayment.
Coupon $48
Capital $0
Total $48
Therefore the cash flow in year 5 is -$48.
Answer:
Its study combines elements of accountancy, finance, marketing, organizational studies and economics. Business Studies is a broad subject in the Social Sciences, allowing the in-depth study of a range of specialties such as accountancy, finance, organisation, human resources management and marketing.
