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- Why do people of home country demand foreign currencies and why do they supply foreign currencies in forex market. Assuming that capital inflow in home country increases due to more negative impact of Corona virus in developed countries, explain whether PKR will appreciate or depreciate.How should appreciation of a firm’s home country currency generally affect its cash inflows? How should depreciation of a firm’s home country currency generally affect its cash outflows?Asap About 1.1 Swiss Franc (CHF) can be bought on the open market for 1 USD. If the Swiss GDP is 80,000 CHF, what is its value in USD? Round your answer to the nearest hundredth.
- Low interest rates means low inflation which means depreciated currency. This stimulates businessmen to invest abroad as interest rates are low. How can they invest abroad if the currency is depreciated? Wouldn't that be illogical and unfeasible? (According to Mankiw's textbook)Lower Interest rates encourage additional investment spending, which gives the economy a boost in times of slow economic growth. (Investopedia) Is this talking about investment spending abroad or investment spending in general? If Investment abroad increases how can that boost the economy? Aren't those statements contradictory?Recently, Turkey has experienced high inflation and high interest rates. IN spite of that its currency depreciated at historical levels. Is this because of other reasons than high inflation and high interest rates? Do we normally assume "ceteris paribus" when talking about this correlation? Even though its currency depreciated, there were investments made in Turkey. Why?a rise in interest rsates is expected to lead to an appreciation of the currency, and a drop in interest rates is expected to lead to a depreciation. true or falseSelect all that are true given an acceleration of economic growth in the Brazilian economy: A.Long term investors would invest in the Brazilian economy, but only if the structural aspects of its economy support it (e.g. fiscal policy & the rule of law) and this would depreciate the currency B.The domestic currency (the Real) would depreciate as foreign investors seek higher returns at lower risk in Brazil. C.Contractionary monetary policy would appreciate the domestic currency due to the lower risk, ceteris paribus. D.The domestic interest rate would increase as the demand for loanable funds is pro-cyclical
- Select all that are true given an acceleration of economic growth in the Brazilian economy: A. Long term investors would invest in the Brazilian economy, but only if the structural aspects of its economy support it (e.g. fiscal policy & the rule of law) and this would depreciate the currency B. The domestic currency (the Real) would depreciate as foreign investors seek higher returns at lower risk in Brazil. C. Contractionary monetary policy would appreciate the domestic currency due to the lower risk, ceteris paribus. D. The domestic interest rate would increase as the demand for loanable funds is pro-cyclical Detailedly Explanation Please, Thank you!Why some countries are using thin film interference effect in the currencies?Identify what you consider to be the political risks facing companies thinking of investing in USA considering GBP/USD trend and how a company would go about trying to mitigate these risks.
- What is the connection between the Higher net income of central bank ang foreign exchange gains?What is the effect of the uncertainty about the future purchasing power of a currency? a. Discouraging investment and savings b. Encourages savings and investment c. No effect d. Decreases current purchasesE1 Countries that have good financial intermediaries: have savings that are used less effectively. channel fewer savings into funding for investments in capital. have smaller loan markets. make more good investments..