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sergiy2304 [10]
3 years ago
10

Assume that you believe exchange rate movements are mostly driven by purchasing power parity. The U.S. and Canada presently have

the same nominal (quoted) interest rate. The central bank of Canada just made an announcement that causes you to revise your estimate of Canada's real interest rate upward. Nominal interest rates were not affected by the announcement. Do you expect that the Canadian dollar to appreciate, depreciate, or remain the same against the dollar in response to the announcement
Business
1 answer:
o-na [289]3 years ago
3 0

Answer:

The Canadian dollar would appreciate

Explanation:

Real interest rate is nominal interest rate less inflation rate

exchange rate is the rate at which one currency is exchanged for another currency

if the real interest rate of the canadian dollar increases, there would be an increase in demand for canadian dollars. As a result, the demand for canadian dollars would increase. the increase in demand would lead to an appreciation of the canadian dollar

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Jim and Carolyn, who are married, establish a Coverdell Education Savings Account to pay for the future college expenses of thei
nasty-shy [4]

Answer:

$2000

Explanation:

CESA is a tax deferred account founded by the USA government  to support educational expenses for children that are not more than 18 years of age .

CESA , an acronym for coverdell education savings accounts allows a couple who filed jointly with a modified adjusted income that is not more than $220,000 to contribute not more than $2000 per student for each year.

The contribution is tax free assuming it is less than the account holder's annual adjusted qualifies expenses

5 0
3 years ago
As the price of a resource decreases, _____. a. the supply of that resource increases b. producers are more willing and able to
solmaris [256]

Answer:

b. producers are more willing and able to hire that resource

Explanation:

In production resources are defines as various inputs in the production process of a product.

It contributes to the final product that a consumer buys and they have their various costs which are used to obtain their use.

So when the price of a resource decreases, it means that the cost of production also decreases.

There is now more outlay of cash that can be used hire that resource.

Producers are able to produce more of the final product so supply increases.

6 0
4 years ago
Lucia Ltd. reported net income of $135,000 for the year ended December 31, 2016. January 1 balances in accounts receivable and a
tester [92]

Answer:

Lucia's cash flows from operating activities would be:

$132,000.

Explanation:

Accounts Receivable  End: $30,000  Beginning: $29,000 = -$1,000  

Accounts Payable    End: $24,000  Beginning: $26,000 = -$2,000  

Net Income : $ 135,000

To calculate the total cash flow from operating activities it's necessary to deduct of the Net Income the variance of these accounts which indicates a negative variance during the year, -$2,000 on accounts payable because the company paid more bills these year than before, and -$1,000 because the company expand their credit line to customers.

Cash Flow: $135,000 - $1,000 - $2,000 = $132,000.

4 0
3 years ago
Martin has 5 tickets to Cartoon Characters on Ice. They cost him $16.50 each, plus $2.50 in handling per ticket, and $12 in ship
Monica [59]

Answer:

$107

Explanation:

Total cost = Fixed cost + variable cost

(16.50 + $2.50 ) × 5= $95

$95 +$12 = $107

I hope my answer helps you

5 0
4 years ago
Which of the following is being described when a security professional develops and publishes a password policy specifically tai
Dahasolnce [82]

Answer: 3. Implementing security control diversity

Explanation:

Risks of organizations varies. The control method used in combating various risks is relative to the business and the types of risks it is exposed to.

So this implementation of this security is relative to the company.

4 0
3 years ago
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