Zimbabwean dollar

FINANCE ASSIGNMENT 2 _ Answer Key PROBLEM I (30 points) Suppose the quarterly (90-day) interest rate in the US is 2.5% and it is 4% in Canada. If the $/CD spot exchange rate is $0.80/CD and the 90-day forward exchange rate between US and Canadian dollars is $0.79/CD , does the interest rate parity (IRP) hold? Why or why not? If it does not hold, what is the direction of the capital flow? 1.025 0.79  1.04 0.80 0.9856 ≠ 0.9875 IRP does not hold. 2.5< (4-1.25=2.75) Therefore, funds flow from US to

who are opposed to banking and government would love bitcoin- there are no banks or government regulations but so what? Bit coin users like it being anonymous because the banks can’t track the money. I don’t understand, if you give someone twenty dollars in cash, the government has no idea

The academic disciplines of computer security and information assurance emerged along with numerous professional organizations – all sharing the common goals of ensuring the security and reliability of information systems. ROT5 is a practice similar to ROT13 that applies to numeric digits (0 to 9). ROT13 and ROT5 can be used together in the same message. ROT47 is a derivative of ROT13 which, in addition to scrambling the basic letters, also treats numbers and common symbols. Instead of using the

obligations. As a result the dollar, due to international regulations, is the currency for transactions involving diamonds, Sparkle must comply the law, but the dollar and countries that use it as their primary currency does not significantly influence prices of diamonds since it is regulated and the main market for diamonds is located in Belgium country using the euro as primary currency. In this case, Sparkle would be in a situation where the volatility of the dollar could affect their overall performance

adopt the US dollar as their official form of currency. As CNN’s article states, millions of dollars were sent to banks to familiarize themselves with green backs, so it is not as though the shift was unexpected or ill warned. With their economy already being familiar with our currency, taking in an average of “$4 million a day” alone from Salvadorans living in the US, there does not seem to be anything that would seemingly set the country back as far as making the shift to dollars. I can see the

We are also not recommending the euro denominated Eurobond that offers a fixed rate of 4.8%, 2% fees and an all-in-cost of 5.147% because we feel that maintaining a localized financial structure (dollar denominated) outweighs the lower all-in-cost then the two recommended options. Lastly, we are not recommending the Yankee bond because we feel it would be difficult for Tirshrup to obtain the $100 million because they have no operations in the United

FINC/ECON 3240 - International Finance Homework Solution Chapter 1 2. Comparative Advantage. a. Explain how the theory of comparative advantage relates to the need for international business. ANSWER: The theory of comparative advantage implies that countries should specialize in production, thereby relying on other countries for some products. Consequently, there is a need for international business. b. Explain how the product cycle theory relates to the growth of an

But before that happens and for proper economic performance of real income derivatives, must be exchanged for dollars in each period, to distribute investment and benefits, in order to reduce risks. ALTERNATIVES Take the currency risk, and buy real, hoping it will appreciate in future. This seemed to be a favorable option because the real had consistently appreciated against the dollar over the past three years, and macro volatility is low and economic policy is sound although the fiscal and external

Week 9 (Word limit: 2,000) CHOOSE ONE 1. Discuss the causes of the Great Recession of 2008-10. Does the crisis represent a shift in the centre of global economic power from the United States to China? In your answer discuss the future fate of the US dollar as the preeminent international means of payments and reserve asset. The great recession of 2008-2010 resulted from a combination of easy credit conditions during the financial boom of 2002-2008 which saw a change that lead to encouragement of

Over the past two years, the US Dollar has been strengthening against major global currencies. With US Dollar being the most popular currency for international deals, a stable US Dollar helps in trade. Hence it is necessary to understand the impacts of the increasing strength of US Dollar. The rise of US Dollar in March of 2015 was the fastest rise in 40 years (Gillespie, 2015). And with the US Dollar still strengthening and post the election results, it really would be interesting to see the impact