Suppose the exchange rate is 90 yen per U.S. dollar and the United States wants to keep the exchange rate at a target rate of 90 yen per U.S. dollar. If the demand for U.S. dollars decrease, the Fed ______
A. buys dollars to raise the exchange rate
B. sells dollars to raise the exchange rate
C. sells dollars to lower the exchange rate
D. buys dollars to lower the exchange rate

Answers

Answer 1

Answer:

Option A, buys dollars to raise the exchange rate, is the right answer.

Explanation:

Option A is correct because when the Fed will buy the dollars then only the demand for dollars will shift rightwards. Consequently, the dollar price or exchange rate will go up. Therefore, the Fed will buy the dollars to increase the exchange rate. In another case, if the Fed wants to decrease the exchange rate then it will sell the dollars, and selling of dollars will shift the supply rightwards. Thus, the exchange rate will fall.

Answer 2

The value of the currency of a country as contrasted to the other country or the economic region is called an exchange rate.

The correct answer is:

Option A. buys dollars to raise the exchange rate.

This can be explained as:

When Fed will purchase a dollar then, there will be shifts towards the right.

The transfer rate or the dollar price will rise.

So to enhance the economic measure dollar should be purchased.

To reduce the exchange rate dollar should be sold.

Therefore, Fed should buy dollars.

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Related Questions

Alpha Industries is considering a project with an initial cost of $9.1 million. The project will produce cash inflows of $1.84 million per year for 7 years. The project has the same risk as the firm. The firm has a pretax cost of debt of 5.94 percent and a cost of equity of 11.49 percent. The debt–equity ratio is .71 and the tax rate is 40 percent. What is the net present value of the project?

Answers

Answer:

NPV = $1.22  million

Explanation:

The Net present value (NPV) is the difference between the Present value (PV) of cash inflows and the PV of cash outflows. A positive NPV implies a good investment decision and a negative figure implies the opposite.  

NPV of an investment:  

NPV = PV of Cash inflows - PV of cash outflow  

To work oit the NPV we would need to determine the discount rate i.e cost of capital as follows:

Cost of capital -discount rate -

WACC = We×Ke + Wd×Kd

After cost o debt = 5.94× (1-0.4)=3.56

WACC = (0.71×3.56 %)  + (0.29×11.49%)=5.86 %

PV of cash inflow = A× (1- (1+r)^(-n))/r

A- annul cash inflow, r- 5.86%, n- 7

PV of cash inflow= 1.84 million × (1- 1.0586^(-7))/0.0586 =10.32

Initial cost = 9.1 million

NPV = 10.32  - 9.1 =  1.22 million

NPV = $1.22  million

A Japan-based company, Sumo Gyms, Inc., issues a 35-year, semi-annual coupon bond, with a ¥300 million par value. The coupon rate is given as 5.90%, and the yield to maturity is 6.70. a. What is the value of the semi-annual coupon on the bond?

Answers

Answer:

per*

Explanation:

Under the allowance method, when writing off an account receivable, the journal entry to record the write-off includes a credit to:

Answers

Answer: credit to Accounts Receivable

Explanation:

Accounts Receivable is the payment that a particular company will get from the customers who have bought the company's product or services on credit.

Under the allowance method, when writing off an account receivable, the journal entry to record the write-off includes a credit to account receivables.

Suppose annual inflation rates in the U.S. and Mexico are expected to be 6% and 80%, respectively, over the next several years. If the current spot rate for the Mexican peso is $.005, then the best estimate of the peso's spot value in 3 years is Group of answer choices $.00276 $.01190 $.00321 $.00102

Answers

Answer:

$.00102

Explanation:

The forward peso's spot value in 3 years can be computed using the below formula:

forward exchange rate=current spot rate*(1+US inflation)^3/(1+Mexican inflation)^3

current spot rate=$.005,

US inflation rate is 6%

Mexican inflation rate is 80%

forward exchange rate=$.005,*(1+6%)^3/(1+80%)^3

forward exchange rate(in 3 years)=$0.00102

Suppose that the income tax rate is reduced by the federal government and simultaneously a recession hits causing the economy to move below its potential output, this will:

Answers

Answer:

Raise both the cyclical and structural deficits

Explanation:

During economic downturn the cyclical deficit will rise, leading to rise in already structural deficit of federal government. The Structural deficit arises when government continue to spend more than its revenue, and thus cyclical deficit will add upward pressure in structural deficit.

Therefore there will be Raise in both the cyclical and structural deficits

After analyzing its own resources and unique abilities, a company is now trying to determine what group of customers it can satisfy with a good or service. It is in the process of choosing a

Answers

Answer: target market

Explanation: A target market is simply a group of people whose needs and preferences match the product range of a company and to whom those products are marketed, often times actively. As such, when the resources and unique abilities of a firm has been analysed, and is now in the process of determining what group of customers it can satisfy with a good or service, then it is in the process of choosing a target market.

In the Vaughn Manufacturing, indirect labor is budgeted for $108000 and factory supervision is budgeted for $36000 at normal capacity of 160000 direct labor hours. If 170000 direct labor hours are worked, flexible budget total for these costs is:

Answers

Answer:Flexible budget =$ 150,750

Explanation:

Variable overhead rate = $108,000 / 160000 = $ 0.675 per hour

(budgeted supervision cost) Fixed overhead = $ 36,000

Flexible budget =  Variable over head rate x  direct labour  + budgeted supervision cost (fixed overhead)

                        0.675 x 170,000+ 36,000

                      = 114,750+36,000

                         =$ 150,750

As the workforce becomes more diverse, why does performance appraisal become a more difficult process?

Answers

Answer:

Performance appraisal in a company with diverse workforce becomes difficult because of some cultural biases that may exist between the manager, who is doing the appraisal, and the diverse workforce.  This problem becomes more acute if the manager is culturally biased and discriminatory by practise.

Explanation:

Company A can have a diverse workforce if it is made up of employees from culturally different places working together in the same workplace.  Bias often arises due to human cultural nuisances.  This becomes more obvious where managers are from some particular cultures while the employees are from mixed cultures.  In such situations, the managers need to be retrained to enable them embrace cultural diversity in the workplace and in performance evaluation.

The key cause due to which the performance appraisal becomes problematic due to diversity in the workforce would be:

- Cultural bias

What is performance appraisal?

Performance appraisal is described as the process of reviewing the performances done by the employees in a particular organization to attain its goals and reward them accordingly.

When the workforce of a particular company or organization becomes exceedingly diverse, it becomes problematic to do performance appraisals.

The reason behind this is that this diversity gives rise to cultural biases and may result in discrimination.

Learn more about "Performance" here:

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seigel co. maintains a defined-benefit pension plan for its employees. at each balance sheet date, seigel should report a pension asset / liability equal to the

Answers

Answer: funded status relative to the projected benefit obligation

Explanation:

A defined benefit pension plan is a pension plan type in which the employer promises to pay the worker a lump sum or a pension payment which is based on the earnings history, age and the tenure of service of the worker.

Since Seigel co. maintains a defined-benefit pension plan for its employees. at each balance sheet date, seigel should report a pension asset/liability that will be equal to the funded status relative to the projected benefit obligation.

On January 31, 2021, B Corp. issued $650,000 face value, 11% bonds for $650,000 cash. The bonds are dated December 31, 2020, and mature on December 31, 2030. Interest will be paid semiannually on June 30 and December 31. What amount of accrued interest payable should B report in its September 30, 2021, balance sheet

Answers

Answer:

The amount of accrued interest payable that B should report in its September 30, 2021, balance sheet is $ 23,833.

Explanation:

Prepare a Bond Amortization Schedule using the data :

Hint : First find the Yield to Maturity

N = 10

PV = $650,000

Pmt = ($650,000 × 11%) ÷ 2 = - $35,750

P/ yr = 2

FV = - $650,000

YTM = ?

Using a Financial Calculator, the YTM is 11.64%.

By the end of September 30, 2021, 8 months` interest will have expired.Thus the amortization schedule should accrue interest for 8 months as follows :

Interest $ 23,833 (debit)

Investment in Bond $ 23,833 (credit)

Interest Calculation = $ 35,750 × 8 / 12

                                 = $ 23,833

Suppose that when your income increases by $300, your consumption expenditures increases by $240.
Your marginal propensity to consume (MPC) is _________ .
If your MPC was the same as the MPC for the economy as a whole, the expenditure multiplier for the economy would be ______________ .
Thus, a $4 million investment project would increase income by $ _________ million in total.

Answers

Answer:

The MPC is 0.8

The multiplier or k is 5

The increase in income would be $20 million.

Explanation:

The marginal propensity to consume (MPC) is the proportion of increased disposable income that consumers spend. It is a metric to quantify the induced consumption and how an increase in consumer spending occurs as a result of increase in income.

MPC is calculated as follows,

MPC = Change in consumer spending / change in income

MPC = 240 / 300

MPC = 0.8 or 80%

To calculate the multiplier, we simply use the following formula,

Multiplier or k = 1 / (1 - MPC)

k = 1 / (1 - 0.8)

k = 5

So, the expenditure multiplier for the economy would be 5.

To calculate the increase in income, we will multiply the investment amount by the expenditure multiplier.

Income increase = 4000000 * 5

Income increase = $20000000 or 20 million

In trial balance, which accounts with normal balance is recorded at the credit side?

Answers

Accrued expenses account

ane is planning to offer a Groupon for inner tube rentals that she will distribute on hot, sunny, summer days by the river that runs through her town. Based on her past experience with Groupon, she has assigned the following probability distribution to the number of tubes she will rent on a randomly selected day. If Jane would like her expected revenue to be at least $300 per day, what should the Groupon price be? (Round your answer up to the nearest whole dollar amount.)

Answers

Probability assigned:|

x 30 60 120 180

P(x) .10 .40 .40 .10

Answer:

Jane

Price of Groupon for a revenue of $300 is:

$3

Explanation:

a) Data and Calculations:

Expected Sales volume:

Number of Tubes  x   30     60      120     180

Probability P(x)           .10     .40      .40      .10

Expected values          3      24       48       18

Total = 93 tubes

Groupon price = $300/93 = $3.23

b) Jane's price for each Groupon will be the rent revenue per day divided by the expected number of tubes to rent daily.  The expected number of tubes is derived by multiplying each expected number of tubes by its probability and then summing up the results.

The debt-to-equity ratio for your small business was 1.40 at the end of last year and 1.25 at the end of this year. Your debt-to-equity ratio is:_________

Answers

Answer:

debt-to-equity ratio is 1.33 .

Explanation:

Given the debt equity ratio at the beginning and at end of the year, we can estimate the debt equity ratio of a company as the average of the two.

Average debt-to-equity ratio = (1.40 + 1.25) ÷ 2

                                                = 1.325 or 1.33

Your client in the 25% federal income tax bracket lives in a state where his earnings place him in the 6% bracket for state income tax purposes. If he were to purchase a 4% bond issued by a political subdivision of another state, his total tax-equivalent yield would be

Answers

Answer:

Slightly more than 5.33%.

Explanation:

In case when the municipal bond owned by an individual i.e. issued is not for interest free tax rate but also it is non tax on that particular state

So here the tax-equivalent yield is

= Purchase bond percentage ÷ (1 - tax rate)

= 0.04 ÷ (1 - 0.25)

= 5.33%

Hence, his total tax-equivalent yield is 5.33% i.e. calculated by applying the above formula

What describes minerals that are deemed real property, such as gold and silver, until they are removed from the earth and become personal property?
A. Mineral rights.
B. Nutrients.
C. Synthetics.
D. Solid minerale.

Answers

Answer:

The correct answer is D

Explanation:

Solid minerals contained in the land

(Coal, iron, ore, gold or silver)

Hope this helps! (づ ̄3 ̄)づ╭❤~

Minerals known as real property such as gold and silver are known as Solid minerale before they later become personal property.

What is a Solid minerale?

These are mineral that is natural occurring in a solid and inorganic state and are representable by a chemical formula.

An example of Solid minerale includes Talc, Gold, Clay, Lithium, Kyanite, Wolframite, Gemstones etc

Therefore, the Option D is correct.

Read more about Solid minerale

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As the leader of your newly formed 9-person team, one of your key concerns is that the team performs as a cohesive unit. Which of the following descriptions is most likely to indicate that your team is cohesive?
A. There is very little conflict between team members.
B. Team members prioritize the team’s goals over their own goals.
C. Whenever tackling a new team task, members typically divide into the same 3 subgroups.
D. Team members have no problem working independently or alone.

Answers

Answer:

b. Team members prioritize the team’s goals over their own goals.

Explanation:

Team cohesiveness is mostly seen in teams that perform highly. People in such teams are usually more likely to cooperate and they have an effective way of achieving their set objectives.

Team cohesiveness would have members of a team acting together rather than individually. It is an interpersonal relationship that is alive within members of the group and this pushes and motivates them to participate more and do what is necessary to achieve all of their objectives.

Which of the following refers to how companies remain in business? sustainability corporate social responsibility carbon footprint closed-loop supply chains economic sustainability

Answers

Answer:

Economic sustainability

Explanation:

Let M be the number of units to make and B be the number of units to buy. If it costs $2 to make a unit and $3 to buy a unit and 4000 units are needed, the objective function is

Min 2M + 3B

Min 4000 (M + B)

Max 2M + 3B

Max 8000M + 12000B

Answers

Answer:

Min 2M + 3B

Explanation:

Data provided in the question

Let us assume M denotes the making units

B denotes the buying units

So,

Making cost per unit = $2

And, the buying cost per unit = $3

And, the total number of units required = 4,000 units

Based on the above information, the objective function is Min 2M + 3B.

This indicates the minimum total cost

Hence, the correct option is A.

According to research, effective leaders at all levels of organizations have high levels of Emotional Intelligence (EI). CEOs with high EI excel in all of the following exceptA) managing relationships.B) influencing people.C) forging alliances inside and outside the firm.D) ability to discourage outside stakeholders.

Answers

Answer:

D) ability to discourage outside stakeholders.

Explanation:

Emotional Intelligence (EI) is important for effective leaders at all levels or organizations including CEO, as it helps in several organizational functions such as managing employee relations, satisfying employees, influencing people and forging alliances inside and outside the firm.

But a CEO with high level of EI will never discourage outside stakeholders, rather they will encourage their employees to perform better.

Hence, the correct answer is "D".

Firms that tend to focus on conducting e-business with other businesses are referred to as having a B2B model.
A. True
B. False

Answers

Answer:

A. True

Explanation:

B2B model is when companies sell goods or services to other companies instead of a consumer. Also, these transactions can occur through the internet where businesses can generate a contact and make a transaction. Because of this, the statement that says that firms that tend to focus on conducting e-business with other businesses are referred to as having a B2B model is true because this model is about transactions between companies and they can happen through the internet.

Antitrust regulations would most likely require one of the following in order to determine whether or not a merger may enhance competition. Which one is it?
A. Highly complex analytical tools
B. Analysis using numerical tools
C. Obvious objective judgments
D. Readily qualified judgments

Answers

Answer: analysis using numerical tools

Explanation:

The main reason for the creation of Antitrust laws was to give power to the government to block some particular mergers and also break up the large firms to smaller ones.

Antitrust regulations would most likely require analysis using numerical tools in order to determine whether or not a merger may enhance competition.

Your textbook discussed a model of a simple economy with four markets: labor, capital, energy, and food. Which of the following statements is inconsistent with a general equilibrium for this simple economy?
A. The household demand for energy equals the industry supply of energy.
B. The household demand for food equals the industry supply of food.
C. The household demand for labor equals the industry supply of labor.
D. The household supply of capital equals the industry demand for capital.

Answers

Answer:

The correct answer is the option C: The household demand for labor equals the industry supply of labor

Explanation:

To begin with, when it comes to the microeconomics theory the market of labor is considered to be as a factor of production market and from that point of view the labor is demanded by the companies to the households who are the ones who offered the labor due to the fact that the workers are the one who put their force to disposition of the companies. And that is why that it would be inconsistent to say that the household demand for labor will equals the industry supply of labor, because it is all the way around, the household supply of labor will equals the industry demand of it.

0.69 points eBookPrintReferences Check my work Check My Work button is now enabledItem 1Item 1 0.69 points Fresh Veggies, Inc. (FVI), purchases land and a warehouse for $410,000. In addition to the purchase price, FVI makes the following expenditures related to the acquisition: broker's commission, $21,000; title insurance, $1,100; and miscellaneous closing costs, $4,200. The warehouse is immediately demolished at a cost of $21,000 in anticipation of building a new warehouse. Determine the amount FVI should record as the cost of the land.

Answers

Answer:

$457,300

Explanation:

Calculation to determine the amount FVI should record as the cost of the land.

COST OF LAND

Land and warehouse $410,000

Add Expenditure:

Broker's commission $21,000

Title insurance $1,100

Miscellaneous closing costs $4,200

Warehouse demolished cost $21,000

Cost of land $457,300

Therefore the cost of land will be $457,300

Margin on price as a percentage is the expression of how much you mark your product up by to arrive at your retail price. True False

Answers

Answer:

False

Explanation:

The margin on price refers to a percentage by taking a difference between the gross profit and the selling price

Here gross profit comes by

= Selling price - cost price

Now in the cost price we added some markup percentage i.e most probably equivalent to the retail price

Hence, the given statement is false

According to the Prebisch-Singer hypothesis, this fate has befallen many developing countries given the general decline in commodity prices in relation to the price of manufactured goods.A) TrueB) False

Answers

Answer: True

Explanation;

Generally, manufactured goods cost more than the commodity goods that they were manufactured from due to the value that has been added to them. This is what the Prebisch-Singer hypothesis argues, that commodity prices decline overtime in relation to manufacturing good prices.

This is a fate that has befallen many developing countries as many of them export commodity goods to developed countries who then add value to them, turning them into manufactured goods and then selling them back to developing countries at a higher price thereby negatively affecting their balance of trade.

Charlie is a strategist who wants to decide on the appropriate strategy to help his firm "go global." Which of the following should Charlie consider while choosing his strategy?A) He must be aware of the fact that despite globalization and the emergence of the Internet, firm geographic location has actually maintained its importance.B) He should rely on his firm's business-level strategy as a clue to possible strategies pursued globally.C) He should remember that he has only one framework at his disposal to make global strategy decisions.D) He must remember that higher levels of control and a lower likelihood of any loss in reputation go along with less investment-intensive foreign entry modes.

Answers

Answer: A) He must be aware of the fact that despite globalization and the emergence of the Internet, firm geographic location has actually maintained its importance.

Explanation:

Charlie must consider that despite the fact that the internet and technology have made globalization more accessible, the location of a business remains very important hence the old saying "its all about location location location".

The firm's geographical location has an effect on stakeholders in the company such as customers, employees and suppliers. For the customers, even if the business was to rely on the internet and delivering goods, the location needs to be convenient enough to ship goods from.

The Suppliers as well need to be able to send the goods ordered for in a timely fashion and an improper location can hamper that. Even employees need a place to work in that is conducive for them in terms of logistics and a safe working environment. Charlie should definitely not forget about the importance of location.

Lacy Technology transferred items with $12,600 of cost out of the Assembly Department because the items were finished and ready to be sold. What journal entries correctly reflects this transaction?

Answers

Answer:

Dr Finished Goods Inventory 12,600

Cr Work in Process - Assembly 12,600

Explanation:

Based on the information given we were told that the company transferred items that cost the amount of $12,600 from the Assembly Department because the items were finished and ready to be sold which means that the journal entries will be recorded as:

Dr Finished Goods Inventory 12,600

Cr Work in Process - Assembly 12,600

Projectized organizations are especially effective at helping team members to maintain their discipline-specific competencies. Group of answer choices

Answers

Answer: False

Explanation:

A projectized organization is a form of organization structure is that is designed such that it is hierarchical and headed by the project manager who is typically involved in every decision that is made regarding the project as he or she is the one that team members report to.

Therefore, projectized organizations are not effective at helping team members to maintain their discipline-specific competencies.

Which of the following is NOT a benefit of a social media presence for a brand? Group of answer choices Social media allows companies to have a short-term focus. Social media allows marketers to establish a public voice and presence online. Social media can cost-effectively reinforce other communication activities. Social media can encourage companies to stay innovative and relevant. Social media can be used to build or tap into online communities.

Answers

Answer: Social media allows companies to have a short-term focus.

Explanation:

Social Media has made the world way more connected than it was before even with the advent of the Internet. As such, companies were able to leverage on this to improve their brand and popularity by being present on the various social media platforms.

With social media, companies have been able to marketers to establish a public voice and presence online, cost-effectively reinforce other communication activities, build online forums and communities as well as remain relevant in a fast changing world.

Companies having a short term focus as a result of social media is not a benefit of social media. A company should always think long term and even social media can help them achieve long term growth if long term marketing plans are integrated with social media marketing.

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The concept of natural rights which was used in the Declaration of Independence was first proposed by 2x-15=3(2x+3)Its multi step equations 0.69 points eBookPrintReferences Check my work Check My Work button is now enabledItem 1Item 1 0.69 points Fresh Veggies, Inc. (FVI), purchases land and a warehouse for $410,000. In addition to the purchase price, FVI makes the following expenditures related to the acquisition: broker's commission, $21,000; title insurance, $1,100; and miscellaneous closing costs, $4,200. The warehouse is immediately demolished at a cost of $21,000 in anticipation of building a new warehouse. Determine the amount FVI should record as the cost of the land. In trial balance, which accounts with normal balance is recorded at the credit side? Finding the perimeter or area of a rectangle given one of thThe length of a rectangle six times its width.If the area of the rectangle is 150 cm, find its perimeter. As the workforce becomes more diverse, why does performance appraisal become a more difficult process? PLEASE ITS VERY URGENTIf you can speak french please reply to this, I have a question Which structure is located between the trachea and a bronchiole? A. epiglottis B. pharynx C. alveolus D. bronchus Find the vertex of the parabola.f (x) = x squared minus 6 x + 13a.( 4, 0)c.( 3, 4)b.(0, 3)d.( 4, 3) As the leader of your newly formed 9-person team, one of your key concerns is that the team performs as a cohesive unit. Which of the following descriptions is most likely to indicate that your team is cohesive?A. There is very little conflict between team members. B. Team members prioritize the teams goals over their own goals. C. Whenever tackling a new team task, members typically divide into the same 3 subgroups. D. Team members have no problem working independently or alone. How can a nation's government invest in human capital?by providing affordable medical careby building roads and bridgesby making education freeby reducing taxes on domestic tradeby facilitating vocational training(It could be multiple answers or just one) A company's gross profit (or gross margin) was $129,650 and its net sales were $502,900. Its gross margin ratio is How would I solve this? (y-z) z y=-2 and z=4/5 Charles Cooley developed the idea that you learn about yourself from the feedback you receive from others who react to you. So if others tell you that you are funny, you believe you are funny. This construct is called: 1. The Tyndall Effect is most useful for distinguishing between: *a solute and a solventO a suspension and a solutiona colloid and a suspensiona colloid and a solution if the morning temperature started at -7 celsius but warmed during the day to 24 celsius . What is the temperature change A defibrillator is a device used to shock the heart back to normal beat patterns. To do this, it discharges a 15 F capacitor through paddles placed on the skin, causing charge to flow through the heart. Assume that the capacitor is originally charged with 5.0 kV .Part AWhat is the charge initially stored on the capacitor?3109 C7.5104 C7.5102 C7.5105 CPart BWhat is the energy stored on the capacitor?What is the energy stored on the capacitor?1.9108 J380 J190 J1.9104 JPart CIf the resistance between the two paddles is 100 when the paddles are placed on the skin of the patient, how much current ideally flows through the patient when the capacitor starts to discharge?5105 A50 A2102 A5102 APart DIf a defibrillator passes 17 A of current through a person in 90 s . During this time, how much charge moves through the patient?If a defibrillator passes 17 {\rm A} of current through a person in 90 {\rm \mu s} . During this time, how much charge moves through the patient?190 mC1.5 C1.5 mC17 C Determine the present value P that must be invested to have the future value A at simple interest rate r after time t.A = $8000.00, r = 10.5%, t = 9 months$(Round up to the nearest cent as needed.) [tex]\frac{63,75660}{705,280}[/tex] solve for v. 27= -v/2