Q: If a country is an international borrower, then its domestic real interested rate is _________ the…
A: Answer in step 2.
Q: importance and effects of foreign exchange markets on the business world and the economy
A: The value of a foreign investment is determined by its exchange rate. The buying and selling of…
Q: What do you think will happen to the value of the Canadian dollar in 2022? Why?
A: Canada's dollar will strengthen more in 2022 than previous years as oil prices climb up and it will…
Q: What are the alternative solutions for countries to avoid or stop borrowing money? Give advantages…
A: Small business operators frequently use bank loans as a source of capital. Banks, on the other hand,…
Q: The balance of payments of a country is based on the difference between the fund inflows and…
A: When talking about the balance of payment account, it is the account of a country to make record of…
Q: # Foreign investment are recorded in the capital account of Balance of payment. True/False
A: Balance of payment refers to the record of the international transactions that the domestic country…
Q: State three major potential advantage
A: 1. Economic Development Stimulation. Foreign direct investment can stimulate the target country’s…
Q: POLICY ON FOREIGN EXCHANGE INTERVENTION AND MECHANICS USED IN INTERVENTION TO CONTROL EXCHANGE…
A: A foreign exchange intervention is a monetary policy tool in which a central bank actively…
Q: Foreign investment is counted under capital account of balance of payments. True/False
A: In international macroeconomics the capital account of the balance of payment is account which keeps…
Q: What are the Issues of concern to the local government and people of Guatemala with regards to…
A: Guatemala has Central America's largest economy. Remittances from the United States, in particular,…
Q: neighboring countries. How Canadian Economy changed during these years in terms of exchange rate,…
A: Capitalism is a type of economic system in which private individuals dominate a country's trade and…
Q: A rise in interest rates is expected to lead to an appreciation of the currency, and a drop in…
A: A higher interest rate in a country leads to increase in the value of that country's currency…
Q: Discuss how government intervention in the foreign exchange market can effect economic conditions of…
A: 1.Government intervention in foreign exchange market. There are 2 types of foreign exchange rate:…
Q: State reasons why countries renominate their currency
A: The process of voluntarily adjusting the face value of circulating currency is known as…
Q: List TWO disadvantages of foreign investments.
A: Answer: Foreign investment: It refers to the investment in the companies and assets of a country…
Q: If the dollar interest rate is 4 percent, and the euro interest rate is 6 percent, then an investor…
A: Here, it is given that the interest rate on dollars is 4% and interest rate on euros is 10%.
Q: If a countrys official financial account is equal to and its unofficial financial account is equal…
A: Financial accounts are one of the components of the balance of payment accounts that covers all the…
Q: Appreciation vs depreciation under fixed exchange rate
A: The exchange rate refers to the price of one nation's currency in terms of another nation's…
Q: Changes or variations in Foreign Exchange Rates can create a lot of uncertainties for businesses. As…
A: Most businesses import and export their goods all over the world because we live in a global…
Q: An increase in U.S. interest rates relative to German interest rates would likely ____ the U.S.…
A: Interest rates are a major factor that influence currency value and exchange rates.
Q: Find out any three saarc countries and find out their nominal exchange rate?
A: South Asian Association for Regional Cooperation (SAARC) It is an intergovernmental organization…
Q: uncovered interest parity
A: The interest rate parity implies that the expected return from two countries will equalized by the…
Q: when a domestic investor buys a foreign asset, the financial account would rise, stay the same or…
A: When a domestic investor buys a foreign asset , the financial account status can be explained as…
Q: dentify any two reasons that US dollars would be demanded in South Africa
A: International relation among the countries influences the economic, social, and political…
Q: Imports of goods and services is not a source of demand for foreign exchange True/False
A: The requirements for foreign currency to cover the payments is refferd to be as the demand for…
Q: When a country's currency appreciates,
A: Currency of a country appreciate through two ways they are voluntary and involuntary.
Q: s money sent by immigrants back to their home countries.
A: Immigrants are people who live in foreign countries and are not residents of that country.
Q: An appreciated currency can buy foreign currency
A: Currency appreciation means rise in the value the country's currency with respect to another…
Q: A strong US dollar tends to A. Reduce exports to foreign buyers B. Reduce imports…
A: When the dollar value increases, then it makes import cheaper and export costlier. The reason is…
Q: balance of payments issued by a country: deficit or surplus?
A: BALANCE OF PAYMENT(BOP) is the systematic record of all economic and financial transactions between…
Q: How does Micro Credit overcome foreign exchange rate risk?
A: Managing foreign exchange risk is becoming a more pressing issue for Microfinance Institutions…
Q: Write down the causes of balance of payments deficit in Pakistan.
A: BOP is the net export and import of a goods, services, capital in year. BOP deficit takes place…
Q: what are some factors affecting the quantity of US dollars supplied in the foreign exchange market?
A: The foreign exchange market helps in the determination of the exchange rate for various currencies.…
Q: An increase in capital inflows in the United States will result in a(n) foreign currency and a(n).…
A: Capital flows have an effect on the domestic currency exchange rate as well as the foreign currency…
Q: Italy has a GDP per capita of 33,000 Euros. The exchange rate is 0.0436 Euros per 1 Mexican Peso.…
A: Given Italy's GDP per capita =33,000 Euros. Exchange rate is 0.0436 Euros per 1 Mexican Peso.
Q: Increase in foreign income will _______ net export but depreciation of domestic currency will…
A: Net exports is the net amount of goods and services sold to the foreigners during a specific time…
Q: Borrowings from abroad is recorded in the capital account of balance of payment. True/False
A: BOP displays the total value of all financial transactions as well as transactions involving…
Q: Write 9 recommendations to reduce trade deficit for Pakistan?
A: A trade deficit occurs when a country's imports exceed its exports during a given time period. They…
Q: Expatriates can easily migrate from one to another of GCC Member Country. a. True b. False
A: Question: Expatriates can easily migrate from one to another of GCC Member Country. a. True b. False…
Q: real depreciation in the value of a nation's currency should result in
A: Option (a). Depreciation of domestic currency makes exportable goods cheaper and foreign goods…
Q: Will an increase in attractiveness of the US as a tourist destination DECREASE or INCREASE the value…
A: Will an increase in attractiveness of the US as a tourist destination DECREASE or INCREASE the…
Q: Why is purchasing power parity important to marketers ?
A: The purchasing power parity is one of the important theory in the exchange rate theories in the…
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Solved in 2 steps
- what are some factors affecting the quantity of US dollars supplied in the foreign exchange market?In your opinion, how can we attract new foreign investors to our country in order to develop our economy?If foreign investors buy more U.S. stocks and bonds, how would that show up in the current account balance?
- Based on your own observation, give the possible sources of political risk in the Philippines particularly to foreign Investors?Suppose country A’s goods become more popular with foreign consumers, and country B’s less so. How would this affect each country, assuming that they share a common currency? What are the pros or cons for each country?What are five ways in which Zambia can improve unfavourable balance of Trade