Currently, you can exchange $1 for SF 1.14. Assume that the average inflation rate in the U.S. over the next two years will be 2.5 percent annually as compared to 3 percent in Switzerland. Based on this information and relative purchasing power parity, which one of the following assumptions can you make regarding the next two years?
A. The Swiss franc will appreciate against all currencies.
B. The Swiss franc will appreciate against the U.S. dollar.
C. The U.S. dollar will appreciate against all currencies.
D. The U.S. dollar will appreciate against the Swiss franc.
E. Both the U.S. dollar and the Swiss franc will appreciate against all other currencies.

Answers

Answer 1

In the next two years, the U.S. dollar will appreciate against the Swiss franc.

Exchange rate is the rate at which one currency is exchanged for another currency. In this equation $1 would be exchanged for SF1.14.

Purchasing power parity theory states that the same basket of books would cost the same when the exchange rate between the countries have been adjusted for. If the inflation rate of one country is expected to increase more than that of the other country, the country with the higher inflation rate, will experience a depreciation of its currency.

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Related Questions

What is a line extension?

Answers

Answer:

line extension is the use of an established product brand name for a new item in the same product category

Explanation:

What is the amount of money it costs to display or broadcast an advertisement called?

Answers

Cost per thousand (CPM)

what functions are performed through the up/down buttons on 2022 versa’s available advanced drive-assist® display?

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In 2022 Versa’s available Advanced Drive-Assist Display, the functions that can be performed by using the up/down buttons include the following:

To highlight multiple items on the menu screen.To use some primary screens in accessing available secondary screens.

Nissan is an automobile manufacturing company that designs and develop various automobile vehicles such as:

Nissan AltimaNissan PrimeraNissan AlmeraNissan Sentra Nissan Versa

In 2022 Versa’s available Advanced Drive-Assist Display, the functions that can be performed by using the up/down buttons include the following:

1. To highlight multiple items on the menu screen.

2. To use some primary screens in accessing available secondary screens.

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If you invest $4,200 at a 8. 5% simple interest rate, approximately how many years will it take for you to have over $6,300?.

Answers

The number of years it would take to have over $6,300 is 6 years.

Simple interest is a type of interest in which interest is earned only on the amount of money deposited.

The formula that can be used to determine the number of years is: Interest / (principal x interest rate)

Interest = $6300 - $4,200 = $2100

Time = $2100 / ($4200 x 0.085)

2100 / 357

Time = 5.88 = 6 years

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the two ways that a corporation can be classified by ownership are

Answers

Answer:

The two ways that a corporation can be classified by ownership are: publicly held and privately held

Explanation:

Corporation is majorly defined by the ownership of the entity and this ownership can only be determined by the number of share being held by private groups and promoters or the general public.

what is bad customer service ? with example​

Answers

Bad customer service is like the employee or waiter is being mean or bad to the customers
An example is if you went into a restaurant and a worker came up to you and have bad posture and looked bored she may speak very rudely or seem to not be paying attention then if your food takes a while to come out or even if they say something that makes you uncomfortable or angered. They are many ways or bad customer service like in a clothes store if your buying g something and they treat that item with barely any respect.

which is a good synonym for the word barter in the term barter economy?

Answers

It should be noted that a good synonym that can be used for the word barter in a barter economy is trade.

A barter economy simply means a cashless economy where a good and services are traded at negotiated rates.

It should be noted that barter systems are known as one of the earliest forms of trade. Therefore, a synonym that can be used for the word barter in a barter economy is trade.

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what is the first step in the feedback control system?

Answers

Answer:

The first step in the positive feedback loop is the stimulation that sets off the loop in order to complete a process.

why would the federal reserve enact an easy money policy

Answers

Answer:

Easy money is a representation of how the Fed can stimulate the economy using monetary policy. The Fed looks to create easy money when it wants to lower unemployment and boost economic growth, but a major side effect of doing so is inflation.

Explanation:

oriental Rug Company ships six handmade rugs valued at $5,000 each on consignment to Consign Design. oriental Rug Company pays $1,000 of shipping costs and agrees to accept the return of any rugs within six months of the shipping date. oriental Rug Company also agrees to pay Consign Design a commission of 10 percent for any rug sold. At the end of five months, Consign Design has sold four of the rugs for a total price of $38,000.

The total inventory and revenue value reported by Consign Design at the end of the five months is: _________

Answers

Answer is :

0, 3,800

Explanation:

In a Consignor/consigned relationship, the consignor maintains the inventory on the books. The consigned does not record the full revenue amount, but rather a commission based on the agreement with the consignor. In this case, even though two rugs have not sold, the two rugs that remain unsold are reported on the books of Oriental Rug Company (the consignor). The revenue recorded on Consign Design's books from the sale of the four rugs is based on the agreed upon commission of 10 percent; therefore, $3,800 is the revenue recorded. The $34,200 (90 percent of the total sales) is the payable to Oriental Rug Company and will be recorded as revenue on its books.

The total inventory and revenue value reported by Consign Design at the end of the five months is: 0, 3,800

What is Consignor or consigned relationship?In a Consignor/consigned relationship, the consignor maintains the inventory on the books. The consigned does not record the full revenue amount, but rather a commission based on the agreement with the consignor. In this case, even though two rugs have not sold, the two rugs that remain unsold are reported on the books of Oriental Rug Company (the consignor). The revenue recorded on Consign Design's books from the sale of the four rugs is based on the agreed-upon commission of 10 percent; therefore, $3,800 is the revenue recorded. The $34,200 (90 percent of the total sales) is payable to Oriental Rug Company and will be recorded as revenue on its books.

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Conciliation differs from arbitration in that:________.
a. the conciliator is a neutral third party.
b. the conciliator's goal is to provide a solution to the dispute.
c. the conciliator's solution is legally binding on both the union and management.
d. the conciliator is a member of the union or of management.
e. the conciliator has no formal power over union representatives or management.

Answers

Answer:

I think answer is a.the concilliator is a neutral third party

There are currently 69,000,000 U.S. Twitter users. Roughly 46% of Twitter are on the platform daily. How many Twitter users are on the platform daily?


a) 25,184,000
b) 31,740,000
c) 36,688,000
d) 42,044,000

Answers

Answer:

b. = 31,740,000

Explanation:

69,000,000 - 46% = 37260000

69,000,000 - 37260000 = 31,740,000

A parcel of land is 140 feet by 75 feet and the seller is asking $130 per square foot. What is the asking price

Answers

The asking price would be $1,365,000! I found a quizlet :)

The asking price is $1,365,000 if a parcel of land is 140 feet by 75 feet and the seller is asking $130 per square foot. The cost or current market value of a residence divided by the square footage of the home yields the average price per square foot.

Why is the price per square foot important?

The price per square foot might help you determine whether a house is reasonably priced. If you're seeking to buy a home, it can help you decide what kind of offer to make. You should work together with your real estate agent and carefully evaluate sales comparables.

Given

Dimension of Parcel of land = 140 feet by 75 feet

Cost per feet = $130

Required to calculate the asking price of land =?

Price = Total sq. feet x cost per feet

Price = 140 x 75 x 130 = $1,365,000

Thus, the asking price for a parcel of land is $1,365,000.

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_____ ratios measure the degree and effect of the firm's use of borrowed funds to finance its operations.

Answers

Answer:

DEBT ratios measures the degree and effect of the firms use of borrowed funds to finance it's operations

Answer:

leverage

Explanation:

The cost of holding excess reserves is the interest rate that could have been earned minus the interest rate that is paid on these reserves. If the interest rate is 5% and the interest rate paid on reserves is 2%, the cost of holding on excess reserves is

Answers

Answer:

7% because you would have to add 5% with 2%

Explanation:

because you would have to add 5% with 2% and get 7 %

Which term accurately describes Melanie, who was born in the United States and is currently working in Italy for a company headquartered in China

Answers

A third-country national serves as term that is utilized in description of Melanie, that is been given birth to, in the United States but Working in another country like China.

What is third-country national?

This serves as term to describe an individual that is doesn't belong to a citizen of a country such as United States but is is been assigned a duty.

People do this so as to get better opportunity in their career.

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The requirement for independent verification of a customer's identity when opening an account can be satisfied by examining a copy of the customer's: A birth certificate B driver's license C employer ID D latest federal tax return

Answers

Answer:

umm c I guess maybe hahhaha

A wholesale lending arrangement that permits a mortgage broker to originate, close, and fund a loan using a warehouse line of credit is called:

Answers

Answer:

table funding

Explanation:

what is quality management

Answers

Quality management is the act of overseeing all activities and tasks that must be accomplished to maintain a desired level of excellence. This includes the determination of a quality policy, creating and implementing quality planning and assurance, and quality control and quality improvement.

Paul obtains a $300,000 mortgage loan a 5/1 interest-only ARM with a 10 year balloon at a 3% start rate, a 2% margin, and 2/6 caps. The initial monthly payment for the loan is $750. On the anniversary date of the loan, the index being used adjusts as follows: Year 1: 2.50% (initial year); Year 2: 2.75%; Year 3: 3.25%; Year 4: 3.50%; Year 5: 3.75%; Year 6: 3.00%; Year 7: 2.80%; and Year 8: 5.00%. What will be Paul's monthly payment in year 4

Answers

Paul's monthly payment in year 4 is $1,050.

Data and Calculations:

Mortgage loan = $300,000

Mortgage term = 10 years

5/1 interest-only ARM rate = 3%

Interest margin = 2%

Interest caps = 2/6

Initial monthly payment = $750

The index adjustment is as follows:

Year 1   2.50% (initial year)

Year 2  2.75%

Year 3  3.25%

Year 4  3.50%

Year 5  3.75%

Year 6  3.00%

Year 7  2.80%

Year 8  5.00%

Thus, Paul's monthly payment in year 4 is $1,050 ($750/2.50% x 3.50%).

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When applying for a job, which document should you tailor to fit the job posting?

Both the cover letter and the résumé

Neither the cover letter nor the résumé

Only the cover letter

Only the résumé

Answers

both the cover letter and résumé

Which is the best synthesis concerning utilizing the steps in Latane and Darley's five-step decision process

Answers

Answer:

The interconnectedness of the steps in the process leads logically from awareness to cognition/evaluation to action

Explanation:

The process's interconnection flows logically from awareness through cognitive processing to action.

Latane and Darley (1970) developed a five-stage model that explains why onlookers may or may not offer assistance in an emergency.

The answer 'No' results in no assistance being provided at each step of development, but the answer 'Yes' moves the person closer to offering support.

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Jeff has been a project assistant for XYZ Corporation for five years. Recently he was asked to train Harriet, a new employee. He suggests that she use an Excel worksheet to lay out the projects she is currently working on, and she complies. He is using ________ power.

Answers

The power that Jeff is using towards the new employee is known as Expert power.

The term "Expert power" is used in relation to employee's skill.

Expert power refers to a perception that an employee has a higher level of specific skill set that others do not have  in the organization.

Jeff does possess Expert power because he has great skill set.

Therefore, the power that Jeff is using towards the new employee is known as Expert power.

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It is not necessary, when rejecting a job candidate, to worry about how the rejection is worded, as it will have minimal, if any, impact on the organization. True False

Answers

i would say false……….

Which of the following statement is false?
A. A distributed ledger contains many copies of the same ledger.
B. A distributed ledger stores the same set of transaction records.
C. Because a distributed ledger exists in a blockchain network, a computer consisting of all transaction records may crash and cause the syncing issue in the blockchain network.
D. A transaction record cannot be added to the blockchain unless there is network consensus.

Answers

Ccccccccccccccccccccccccc

the tax cut will have a larger impact on aggregate demand in the economy with the .

Answers

The larger impact will be felt on aggregate demand in the economy and the Larger MPC when there is tax cut.

Tax cuts refers to when there is reduction in tax payment along with the government revenue.

The main reason for Tax cuts is to decrease the income of government and to increase the income of tax payers.

In conclusion, the larger impact will be felt on aggregate demand in the economy and the Larger MPC when there is tax cut.

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One disadvantage of using a company’s tuition reimbursement program is that _______.
a.
You may have to extend your contract with the company
b.
Your ongoing education costs will rise considerably
c.
It may decrease your job satisfaction if you become more skilled
d.
Ongoing education has been proven to decrease worker motivation

Answers

One disadvantage of using a company’s tuition reimbursement program is that you may have to extend your contract with the company.

Tuition reimbursement is offered by employers as a way to pay back employees for education expenses. The people who participated still have to pay out of pocket for the courses they take. At the end of the course, the employee can get back some or all of the tuition expenses.

Answer:

is A. You may have to extend your contract with the company

Explanation: I took the test and is right

A social media marketing campaign is a coordinated social media marketing effort to communicate with a target audience to achieve __________.

Answers

Answer:

A marketing or business goal

Explanation:quizlet.

what is the first thing you should do when you open an account

Answers

Answer : consider how much money you will add in your account and start saving up money

Explanation :

what is a public enterprise?

answer the question ✌​

Answers

A public enterprise is an industrial or commercial undertaking which the government owns and manages. Also, the primary objective of such an enterprise is social welfare and upholding the interest of the general public

Public Enterprise is a business organization partly owned by the state and controlled through a public authority.

Types :

Government companies Departmental undertakingsStatutory Corporations

Examples :

State Bank of IndiaOil & Natural Gas Corporation
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