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Nuetrik [128]
3 years ago
6

Suppose the spot rate of the pound today is $1.70and the three-month forward rate is $1.75. How can a U.S. importer who has to p

ay 20,000pounds in three months hedge the foreignexchange risk?
Business
1 answer:
guapka [62]3 years ago
8 0

Answer: £35000

Explanation:

From the question, we are informed that the spot rate of the pound today is $1.70 and the three-month forward rate is $1.75.

Based on the above information, if

The importer buys £20,000 at $1.75/£ and therefore pays the amount in 90 days as:

£20,000 x $1.75/£

= £35,000

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_______ authority emphasizes that Federal disaster assistance is intended to supplement, not supplant, the resources of State, l
klio [65]

Answer:

B. Executive Order 10427 authority emphasizes that Federal disaster assistance is intended to supplement, not supplant, the resources of State, local, and private-sector organizations

Explanation:

An executive order is a directive issued by the President of a sovereign state that has the full backing of the law. It is always directed to the executive arm of the government. An executive order has a legal and constitutional basis and therefor enforceable. There are many executive orders that have been signed by the United States for various reasons depending on the purpose and the president who signed the order into effect. An example of such order is the Executive Order 10427.

The Executive Order 10427 was signed into effect on the 16th of January 1953 by then President Harry. S. Truman. The order is titled, 'Administration of Disaster Relief.' The report in general gave the authority to the federal agencies to offer disaster assistance to those affected by natural disasters. In section six of the Executive order, it elaborates the nature of administration of the Executive order. The section quotes,"Federal disaster relief provided  under the act shall be deemed to be supplementary to relief afforded by State, local, or private agencies and not in substitution therefor."

5 0
3 years ago
Which factor is typically not a requisite feature of setting a career goal?
Talja [164]

Answer:

Analysing the goal of the family

Explanation:

Analysing the goal of the family is not a requisite feature of setting a career goal. It is an individual person's ability and topic of interest so the family goal cannot be taken into consideration.

The career goal should be set keeping in mind the individual person's area of interest and capability to do certain tasks. Therefore, the goal of the family will not be analysed. However, make sure the goal is challenging, realistic, and measurable.

3 0
3 years ago
Summer Nights sells bottles of bug spray for $ 9.00 each. Variable costs are $ 4.00 per​ bottle, while fixed costs are $ 40 comm
Yanka [14]

Answer:

Operating Income              $75,000             $115,000

Explanation:

The computation of the operating income reflected is shown below:

Units                                    23,000       $31,000

Contribution Margin per Unit   $5                $5

Contribution Margin (Units × Per Unit) $115,000   $155,000

Less : Fixed Cost              -$40,000             -$40,000

Operating Income              $75,000             $115,000

The contribution margin per unit is come from

= Selling price per unit - variable cost per unit

= $9 - $4

= $5

8 0
3 years ago
Steve and Stephanie Pratt purchased a home in Spokane, Washington, for $575,000. They moved into the home on February 1 of year
Julli [10]

Answer:

Steve and Stephanie Pratt

a. The amount of gain on the sale of the home that the Pratts are required to include in their taxable income is:

= $352,500

b. The amount of gain on the sale of the home that the Pratts are required to include in their taxable income is:

= $352,500

c. The amount of gain on the sale of the home that the Pratts are required to include in their taxable income is:

= $352,500

d. The amount of gain on the sale of the home that the Pratts are required to include in their taxable income is:

= $352,500

Explanation:

a) Data and Calculations:

Initial purchase cost of a home in Spokane = $575,000

Selling price of the home on June 30 of Year 5 = $927,500

Recognized gains = Selling price of the home Minus Initial Purchase Cost

= $352,500 ($927,500 - $575,000)

8 0
3 years ago
If a Phillips curve shows that unemployment is high and inflation is low in the economy, then that economy:
Rasek [7]

Answer:

is producing at a point where output is less than potential GDP.

Explanation:

When the unemployment is high it is obvious that the economy is under its potential level but there is inflation case so we need to know the meaning of Philips Curve. The aggregate demand and aggregate supply model provides a simple summary of the possible outcomes proposed by the Phillips curve. The Phillips curve shows the combination of inflation and unemployment arising when the economy of the aggregate demand curve in the short run shifts along the short-term aggregate supply curve. Increased demand for goods and services will lead to higher prices in the short term and increased output of goods and services. Increasing output means increasing employment and lowering unemployment. In addition, the higher the rate this year, the higher the rate of inflation, no matter what the price level is in the past. Thus, the change in aggregate demand leads to short-term changes in inflation and unemployment rates, which is consistent with the dependence described in the Phillips curve. Monetary and fiscal policy tools are used to influence the aggregate demand curve, that is, to move the economy along the Phillips curve. Increasing money supply, government spending, or tax cuts move the aggregate demand curve to the right and drives the economy to a point where the Phillips curve corresponds to lower unemployment and higher inflation. Reducing money supply, government spending, or raising taxes will push the aggregate demand curve to the left, while the economy shifts to the point where Phillips curves with lower inflation and higher unemployment. In this sense, the Phillips curve offers policymakers a set of combinations of inflation and unemployment.

4 0
3 years ago
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