Assume that Eurodollar deposit offer a rate of return of 10% while dollar deposit in US Bank offer 8% rate of return. What will happen the value of USD against EUR? Make sure that
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Assume that Eurodollar deposit offer a
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- Head of the US Federal Reserve recently decided to raise interest rates from 0.25% to 0.50%. Considering this information, please, answer the questions below wherever possible a.How will this change affect USD in the Foreign Exchange Market?Mr. Ali is an exchange broker. He always researched for opportunities of profit through the currencies fluctuations using the strategy 'Buy low, sell high'. He collected the below quotes: Quote GBP/OMR INR/OMR EUR/OMR AUD/OMR Spot 0.5319 0.0056 0.4581 0.2953 Forward 0.5350 0.0053 0.4518 0.2970 Which currency is more beneficial to invest in? O a. AUD O b. EUR O c. INR O d. GBPwhat is the cause of cryprto currencies downfall in the last two years?
- If consumers demand more currency, which will increase? a. Investment spending b. Real interest rate c. Price level d. Bank depositsThomas , a currency trader in East African Community, has ksh 400,000. He wishes to assess if triangular arbitrage by moving to Uganda, and Tanzania. The exchange rate quotes from the currency convertor was: 32TZ/1 KES 20UGH/IKES Agreed exchange rate between Uganda shillings and Tanzania shilling was 1.5 UGH /1TZ Compute the cross exchange rate and triangular arbitrage profit. Explain your answer.Refer to the following list, and explain who will be buying Canadian dollars and who will be selling. a) a Canadian businesswoman visiting Japan The Canadian businesswoman will be selling vCanadian dollars to buy Japanese yen b) a Russian tourist visiting Cape Breton The Russian tourist will be (Click to select) v dollars to spend in Cape Breton. c) an American corporation building a new plant in Saskatoon The American corporation will be (Click to select) v Canadian dollars in order to purchase the building in Saskatoon. d) a Canadian bank expanding its operations in the United States The Canadian bank will be (Click to select) v Canadian dollars to buy American dollars to expand its operations in the U.S. (Click to select) selling buying
- The following report is the amount of various currencies on December 31, 2015 owned by Jordan Exchange Company, as shown below Student Name Student ID EXI D Jordan Exchange Company Currencies Report at December 31, 2015 Currency Existing Quantity Purchasing Price Market Price Value of Existing Currency In JD at: Purchase Price Market Price Lower Price US Dollar 50000 0.709 0.708 222 999 British Pound 20000 0.99 1.01 999 227 Australian Dollar 15000 0.515 0.52 ??? 222 292 Euro 5000 0.769 0.768 Required: 1. Create a new work sheet (Currencies), and enter previous data in it. 2. Insert necessary equations in the related cells to calculate the value of existing currencies in JOD at purchase price and market prices. 3. Use (IF) function to calculate the value of existing currencies in JOD at lower of purchase or market price.Head of the US Federal Reserve recently decided to raise interest rates from 0.25% to 0.50%. Considering this information, please, answer the questions below wherever possible: What can be the reasoning behind such policy? How will this change affect USA money market in the short run? 3. How will this change affect USD in the Foreign Exchange Market?Answer the question according to the graph below. Dollar/euro exchange rate, Ese Esye Dollar return Dollar return 2" 2' Expected euro return 3' Expected euro return Ede Rates of return (in dollar terms) R R R L(A, Yus) L(Rg, Yus) Mis Pis Mis Ps US 4. U.S. real money supply Mis Pis Mus US Pus US U.S. real money holdings U.S. real money holdings Assume that the U.S. money supply is initially given at M-us, the price level is initially given at P'us, and the equilibrium exchange rate is initially at E's/e. Which of the following is TRUE when there is a temporary increase in the nominal money supply from M us to M²us in the long-run. US US Lütfen birini seçin: O A. The new equilibrium exchange rate will be higher than at E's/E O B. The new equilibrium exchange rate will be lower than at Ese O C. The new equilibrium exchange rate will be same with at E's/E O D. None of the answers.
- Answer the question according to the graph below. Dollar/euro exchange rate, Ese Esie Dollar return Dollar return 2' 2' Ee Expected euro return Ee 4' Expected euro return 3' 1" Ege Rates of return (in dollar terms) R R L(A Yus) L(Ag. Yus) Mis Pis Mis Pis 4 U.S. real US money supply Mus Pus MUs Pus U.S. real U.S. real money holdings money holdings Assume that the U.S. money supply is initially given at M-us, the price level is initially given at P'us, the equilibrium exchange rate is initially at E'sje. US, A temporary increase in the nominal money supply from M'us to M²us in the short-run will result in a new equilibrium at point US US Lütfen birini seçin: O A. 3' O B. 2' O C.1' O D. 4'At the end of 2021 , the Federal Reserve took an inventory of its foreign currency reserves. Since the previous year, the following had change Currency Yen (+1-) Change (millions) -26.17 -22.80 Yuan US Dollars 47.57 92.04 Rupees Riyals Pesos 85.61 38.33 Shekels |-30.87 How much did NCO change during this time period? Round to two (2) decimal placesAnswer the question according to the graph below. Dollar/euro exchange rate, Ee Ese Dollar return Dollar return 2' 2' 4' Expected euro return Expected euro return Ege 3' 1' Ese Rates of return (in dollar terms) R R L(Rg. Yus) L(Rg. Yus) Mus Pis Mis Pis 4. U.S. real money supply Mus Mus Pus P1 US U.S. real money holdings U.S. real money holdings Assume that the U.S. money supply is initially given at M'us, the price level is initially given at PUs, and the equilibrium exchange rate is initially at E's/e. Which of the following is TRUE when the nominal money supply permanently increases from Mus to M²us? Lütfen birini seçin: O A. the money supply increase does not affect exchange rate expectations O B. the dollar depreciates against the euro in the long-run. O C. the real money supply rises from M'us / P'us to M²us / P²us in the short run O D. In the short-run, the dollar's depreciation is smaller than it would be if the money supply increase was temporary rather than permanent.