Answer:
its trade deficit rose
Explanation:
Trade deficit occurs when the imports of a country are higher than the exports. It is called the trade deficit. It means the country is importing more value of goods from other countries and exporting less. When Imports grows higher than the growth in exports, the trade deficit eventually rises.
Answer:
Follows are the solution to this question:
Explanation:
Follows are the two ways of describing its high return:
Firstly, the mutual fund is invested in pretty unstable debt and is reciprocating with greater yields for taking a risk.
Secondly, during every decrease in bond yields, the finance kept bonds so the income on stocks exceeded this same rate of interest significantly. Remember that bond costs skyrocket as interest rates drop as well as give the purchaser an investment income. Because once interest rates are now close to zero, it's also likely that they could increase as well as the owners would then lose their money. Its high return could be due to a drop in interest rates, and not only will it not be replicated, but the low or even low return will almost definitely be followed by either a rise in interest rates.
Answer:
Cachita should buy put on yen
Explanation:
Given:
The current spot rate = ¥120.00/$
in US $/¥ = 
or
in US $/¥ = 0.0083
Maturity time = 90 days
Put on Yen Call on Yen
Strike Price 125/$ 125/$
Strike Price in $/¥ 0.008 0.008
Premium 0.00003/$ 0.00046/$
Therefore,
Here the strike price for put on Yen and call on Yen are same
but the premium for Put on Yen is less than the premium for the call on Yen
Therefore, Cachita should buy a put on yen to get the profit from the rise of the dollar
Answer:
C) Invest $2500 in a risk free asset and $2500 in a stock with beta of 2.0
Explanation:
Stock that is beta 2 means that it is twice as volatile as the whole market. Meaning for example if the market is expected to move by 5% this stock will move 10%. New startup firms that are fast-growing usually have stocks in this category. It is more risky thank normal shares but no too much. We can invest $2,500 here.
We invest the remaining $2,500 in risk-free assets
This is a backup on the chance that the investment on beta 2 stocks do not perform, the risk-free assets will make up for losses.
Answer:
The correct answer is letter "C": is an assumption that economists make to have a useful model for how decisions are made.
Explanation:
Rational Behavior guides the decision-making process towards choices that maximize individuals' benefits. Most economic theories assume that any individual taking part in action or activity is behaving rationally. Given the choice, people would choose something that increases their satisfaction.
