As a country accumulates additional units of capial stock it will experience ever decreasing gains in productivity. This property is known as The capital trap The liquidity trap Diminishing returns constant returns
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As a country accumulates additional units of capial stock it will experience ever decreasing gains in productivity. This property is known as
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The capital trap |
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The liquidity trap |
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Diminishing returns |
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constant returns |
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- Exposure refers to the degree to which a company is affected by exchange rate changes. The global economy, Zambia inclusive has seen the fluctuations in the key fundamental economic indicators such as inflation, interest rate and currency fluctuations. This has led to high level of exposures to MNC financial performance in both short and long term. Discuss the effect of transaction, translation and economic exposures on multinational corporations.Country X typically has a high interest rate, and its currency is expected to strengthen against the dollar over time. Country Y typically has a low interest rate, and its currency is expected to weaken against the dollar over time. Both countries have imposed a “blocked funds” restriction over the next four years on the two subsidiaries owned by a U.S. firm. Which subsidiary will be more adversely affected by the blocked funds, assuming that the MNC has only limited opportunities for corporate expansion in both countries?What supervisory and regulatory authority does the BSP NOT have under current law? * the authority to charter banks by putting emphasis on the suitability of shareholders, adequacy of financial strength and sufficient expertise and integrity of management, among others the authority to fix the exchange rates at a given level to maintain order and stability in the foreign exchange market the authority to set a risk-based adequacy requirement to cover credit risks among universal and commercial banks the authority to set prudential limits and requirements that banks must follow in order to prevent undue risk taking the conduct of examinations and inspections on the financial performance, capital adequacy, asset quality and liquidity of supervised financial institutions
- Zambia has issued three sovereign bonds since the previous PF administration ascended to power in 2011. Using bond ranking measures determine the performance of the three sovereign bond issues from the time of issue to date, end of june, 2023. Highlight the effect of the change in administration to UPND has had on the performance of the bonds. Factor into this the recent development of the balateral creditors agreement on the country 's debt restructuring.Q5: Select all of the following that can be accurate said of ADRs and ETFs: Group of answer choices ADRs always transfer voting rights, but ETFs do not. International Equity ETFs provide a way for investors to obtain a diversified portfolio of international stocks in a single transaction. Both ADRs and ETFs trade exclusively on foreign exchanges. ADRs are claims to foreign stock held by an American depository institution.Stipulations criteria for obtaining funds from the IMF are grounded on the Monetarist, Keynesian and Neoclassical economic theories. Select one: True False
- Assume that the central bank buys securities from member banks using open-market operations. Which of the following will decrease in the short run? Group of answer choices Investment Aggregate demand Interest rate TaxesFind and correct mistake in the following statement: "Domestic banks engaged in overseas lending belong among global-level actors in the world economy"Current market conditions are as follows: spot rate (e) between dollar and pound is $1.33 = £1. The rate of return on 1-year domestic bonds (i$) is 1% and the rate of return on 1-year British bonds (i£) is 2%. What is the expected spot rate (ee) 1 year from now that eliminates any arbitrage opportunities given the current market conditions? (Round your answer to 2 decimals).
- The ease at which an asset can be converted into a medium of exchange is known as A. Inflation B. Profitability C. Liquidity D. WealthWhich of the following is a factor influencing the reduction of Caribbean correspondent bank relationships by global banks? a. Trade and economic sanction violations costs incurred from additional due diligence to ensure full compliance. b. Nationalization of foreign bank branches. c. Increased competition from indigenous Caribbean banks. d. Increasing non-performing loans among Caribbean banks.Which of the following statements is false? A major determinant in the long run of the volume of savings is the level of taxes. the money market involves obtaining and trading of credit and debt instruments with maturity of one year or less. bond risk premiums follow changes in investor optimism/pessimism about expected economic activity. A high interest rate level but downward sloping yield curve is generally perceived as being conductive to future economic expansion.
