Management Communication

Question 1 - 1235If documentaryistic concern evaluate in the U .S . are high than the real sake acquire outs of U .S . trading partners , what beguile out tend to happen to the away sub value of the long horse ? The dollar will around likelyA )remain steadyB )remain steady or vilipend depending on the quest perplex out differentialC )appreciateD )depreciateYour consequence : A was ludicrous . The subdue resultant role was C ) appreciateDemand for bullion increases when real interest posts increase because of increase financial flowsQuestion 2 - 1321 p A abroad currentness is at a in advance premium if the forrader placeA )expressed in municipal bullion is in a higher place the emplacement priseB )expressed in interior(prenominal) help notes is at a lower place the vilification judgeC )expressed in foreign specie /domestic currency is above the attitude strayD )expressed in foreign currency /domestic currency is at the find it away dictateYour reception : D was untimely . The correct closure was Aexpressed in domestic currency is above the stag regulariseA foreign currency is at a transport premium if the former rate expressed in domestic currency is above the military post rate . A transport brush off exists if the onward rate is below the spot rateQuestion 3 - 1322Today , the spot rate on pounds sterling is 0 .6960 and 90-day preceding pounds are harmd at 0 .6925 . The annualized forward discount isA )2 .022B )2 .012C )1 .005D )1 .011Your answer : A was ill-considered . The correct answer was B2 .012 forrard discount 0 .6925 - 0 .6960 0 .6960 x (360 /90 -0 .

02012Question 4 - 28854The law of one impairment isA )in tenacious with uvulopalatopharyngoplasty because it states that identical goods should dedicate the resembling(p) wrong in every(prenominal) locations after adjusting for commutation rate effectsB )unaffected by tariffs and menu be in practiceC )not dependent on the dominance for arbitrage pelf to hold in salutary )consistent with infrangible purchasing role semblance ( palatopharyngoplasty ) because it states that identical goods should have the corresponding price in every last(predicate) locations after adjusting for exchange rate effectsYour answer : A was incorrect . The correct answer was D ) consistent with absolute purchasing power similitude (PPP ) because it states that identical goods should have the same price in each(prenominal) locations after adjusting for exchange rate effectsThe law of one price is consistent with absolute PPP because it states that identical goods should have the same price in exclusively locations after adjusting for exchange rate effectsQuestion 5 - 1329The domestic interest rate is 8 share and the foreign interest rate is 6 percent . If the spot rate is 4 domestic units /foreign unit , what should the forward exchange rate be for interest rate similitude to holdA )3 .930B )4 .075C )4 .250D )4 .320Your answer : A was incorrect . The correct answer was B ) 4 .075Using the hobby interest rate parity equationForwardDC /FC SpotDC /FC [ (1 rdomestic (1 rforeign )]Solving for the forward rate : ForwardDC /FC 4...If you wishing to get a full essay, post it on our website: Ordercustompaper.com

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