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iren [92.7K]
3 years ago
9

A drawback to using changes in domestic credit to adjust the domestic money supply to maintain a peg: A) is problems in emerging

market economies as a result of bond market instability.B) is the lack of expertise in financial matters in the central banks of emerging markets. C) is the requirement that currencies flip flop from fixed to floating. D) is that nations are ignoring a potentially more effective source of currency adjustment.
Business
1 answer:
natita [175]3 years ago
5 0

Answer: The most correct Option is option A) is problems in emerging market economies as a result of bond market instability.

Explanation: The question explains why it has been difficult for a nation to control the value of it's money, so as to achieve a fixed exchange rate with other currencies. This is because the bond market is not stable. This bond market is what the central bank uses to control the flow of money into the economy, to avoid depreciation or inflation of the economy. Because the market is not stable due to the rate of bond demand is not stable. This will make it difficult for the central bank to keep a fixed rate of MPR (monetary policy rate) and loans.

Even though all the options are related to the issue, but option A. is directly linked to the question. This can be seen by someone, that the central banks are having brain drain, because it is one of the major issue all central banks are facing. It can also be seen as a reason why money fluctuate. It can also be seen that nation's has ignored to Source more form of regulating money. But due to the fact that bond market instability is the major problem leading to all this. Option A. still remains the answer.

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What is the primary task of the Federal Reserve​
Murrr4er [49]

Answer:

The responsibilities of the Federal Reserve include influencing the supply of money and credit; regulating and supervising financial institutions; serving as a banking and fiscal agent for the United States government; and supplying payments services to the public through depository institutions like banks.

7 0
3 years ago
Read 2 more answers
you own $750000 worth of stock, and you are worried the price may fall by year-end in 6 months. you are considering
timofeeve [1]

Answer: D. I, II, and III

Explanation:

If expecting a price deduction, you can buy Put options. These give you the right to sell an underlying stock at a certain price regardless of what the price in the market is. If you purchased this, you can sell your stock above market value if it does go down.

You can sell write call options for a fee where you give the buyer the right to buy your shares at a certain price in future. This is only valuable if prices rise so as you are expecting prices to fall, you could make a premium on the call option contract fees if prices fall without having to sell off your shares.

Hedging with puts is better than short calls if you are expecting a major stock price decline as the opportunity for profit is higher.

8 0
3 years ago
The new-product process starts with new-product strategy development. Place the steps that follow this one in order. (In other w
nalin [4]

Answer:

1. New-product strategy development.

2. Idea generation.

3. Screening and evaluation.

4. Business analysis.

5. Development.

6. Market testing.

7. Commercialization.

Explanation:

New product strategy is the first one as described and the remaining are briefed below:

Idea Generation: This steps creates the idea for how the product shall be created.

Screening and evaluation: This helps in evaluating the idea generated and comparing it with the practical manner.

Business Analysis aims at analyzing the business prospect of the new product.

Development is done once all of the above steps are in affirmation.

Market testing is done after the development about the market captured by the product or to be captured.

Commercialization basically aims at the proper introduction of the product in the market.

8 0
3 years ago
Brown Street Grocers has a cost of equity of 11.8 percent, a pre-tax cost of debt of 6.9 percent, and a tax rate of 35 percent.
Nastasia [14]

Answer:

The correct answer to the following question is option E) 9.06% .

Explanation:

Here the cost of equity given is  - 11.8%

Pre tax cost of debt- 6.9%

Tax rate- 35%

So the after tax cost of debt - 6.9% x 65%

= 4.485%

The debt to equity ratio - .6

So the weight of debt - .6 / ( 1 + .06 )

= .375

Weight of equity - 1 / ( 1 + .06 )

= .625

Weighted average cost of capital =

Debts cost x weight of debt + Equity cost x weight of equity

= 4.485 x .375 + 11.8 x .625

= 1.681875 + 7.735

= 9.06%

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When a qualified plan starts making payments to its recipient, which portion of the distributions is taxable?
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When a qualified plan starts making payments to its recipient the gains are taxable. Gains are the profit/return that are made from an investment. A gain can be something you make from a sale or or inheritance. Gains are typically taxed in a higher tax bracket as well. 
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