1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
natali 33 [55]
2 years ago
8

If the interest rate rises in the United States relative to other​ nations, then in the foreign exchange market the demand for d

ollars​ ____ and the supply of dollars​ ____. A. ​increases; increases B. ​increases; decreases C. ​decreases; decreases D. does not​ change; does not change E. ​decreases; increases
Business
2 answers:
Bezzdna [24]2 years ago
8 0

Answer:

B. ​increases; decreases

Explanation:

If the interest rate rises in the United States relative to other​ nations, then in the foreign exchange market the demand for dollars​ increases and the supply of dollars​ decreases .

34kurt2 years ago
4 0

Answer:

B. ​increases; decreases

Explanation:

Foreign exchange market can be defined as type of market in which the currency of one country is converted into that of another country.

For example, the conversion of dollars of the United States of America can be converted into naira (Nigeria) at the foreign exchange market.

Efficient market school is the market school which argues that forward exchange rates do the best possible job for forecasting future spot exchange rates, so investing in exchange rate forecasting services would be a waste of time because it is impossible to have a consistent alpha generation on a risk adjusted excess returns basis as market prices are only affected by new informations.

The efficient market school also known as the efficient market hypothesis (EMH) is a hypothesis that states that asset (share) prices reflect all information and it is very much impossible to consistently beat the market.

Also, forward exchange rates are exchange rates controlling foreign exchange transactions at a specific future date or time.

An interest rate can be defined as an amount of money that is charged as a percentage of the total amount borrowed from an individual or a financial institution.

Generally, if the interest rate rises in the United States relative to other​ nations, then in the foreign exchange market the demand for dollars​ increases and the supply of dollars​ decreases because of the high value of the dollar compared to the other currency.

You might be interested in
The Garden Shoppe has adopted a policy of increasing the annual dividend on its common stock at a constant rate of 1.65 percent
Andru [333]

Answer:

In order to find the dividend 8 years from now we will use the formula D*(1+R)^N

Right now

D= 1.84

R=1.65%

N= 8

1.84*(1.0165)^8

=2.097

The dividend 8 years from now will be $2.097.

Explanation:

3 0
3 years ago
If the price elasticity of supply is 0.5 and the quantity supplied decreases by 6%, then the price must have decreased by 3%. a.
PolarNik [594]

Answer: False

Explanation:

The price elasticity of supply measures the change in quantity supplied when the price changes.

The basic trend is that when price increases, quantity supplied increases as well. The reverse is true.

Price elasticity of supply = %Change in quantity supplied / % change in price

0.5 = -6% / Change in price

0.5 * Change in price = -6%

Change in price = -6% / 0.5

= -12%

The statement above is therefore false because price should have reduced by 12% for quantity supplied to reduce by 6%

3 0
2 years ago
Identify the obstacles that are most relevant for a person trying to become a Geographer. Check all that apply.
Elden [556K]

Answer:

the answer 1235 credits to the guy that commented

Explanation:

5 0
3 years ago
Read 2 more answers
Ginger and Maryann are lost in the jungle, where the only things to eat are mangoes and fish. Ginger can gather mangoes faster t
Lyrx [107]

Answer:

C. Maryann should specialize in the activity for which she has a comparative advantage.

Explanation: Being able to produce goods by using fewer resources, at a lower opportunity cost is comparative advantage. Maryann should specialize in the activity where she has this.

5 0
3 years ago
An economic system describes how and why resources are transformed into GOODS and SERVICE to satisfy human consumption needs. We
Marta_Voda [28]

Answer:

Minimizing waste

Pareto efficiency

Explanation:

- This is a situation where waste from allocation of goods is reduced to the nearest minimum.

- This is when every economic good is optimally allocated across production and consumption so that no changes made to allocation can make any body better.

3 0
2 years ago
Other questions:
  • Farmer Jones is producing wheat, and must accept the market price of $6.00 per bushel. At this time, her average total costs and
    10·2 answers
  • On april 1, griffith publishing company received $1,548 from santa fe, inc. for 36-month subscriptions to several different maga
    9·2 answers
  • When eric and david sit down with​ linda, eric complains that david is​ micro-managing him on the quantum electronics project. a
    13·2 answers
  • __________ makes it possible for Ford to invest $60 million in a Mexico City manufacturing plant to produce smaller cars and lig
    13·1 answer
  • Down Under Products, Ltd., of Australia has budgeted sales of its popular boomerang for the next four months as follows:
    6·1 answer
  • The competitive firm's short-run supply curve is its A. marginal cost curve. B. marginal cost curve, but only the portion above
    15·1 answer
  • A company reports the following information for Year 1: Sale of equipment $20,000 Issuance of the company’s bonds 10,000 Dividen
    13·1 answer
  • What is price discrimination?
    11·1 answer
  • These are the last questions of my test PLEASE help i will give brainliest i need to get it done 10 minute!!!
    8·1 answer
  • Paul, a calendar year single taxpayer, has the following information for 2020: AGI $175,000 State income taxes 13,500 State sale
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!