Answered: During 2014 till 2016, Malaysian…

During 2014 till 2016, Malaysian exchange rate faced a depreciation. Based on this situation, what is the reason of the depreciation happen in that year?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: Fill in the blanks using the following words: higher, lower, UK, Netherland, stable, equalized,…

A: investor = 1,000 interet rate in britain = 2% interest rate in netherlands = 2.5%

Q: Under the Trump administration, imports from the EU were tariffed. How did this action change the…

A: Ans. In step 2

Q: Explain with illustrations or diagram, the effect of short-term movements in the business cycle on…

A: A) In the short run, trade imbalances can be affected by whether an economy is in a downturn or on…

Q: Explain Appreciation and Depreciation of Currencies

A: The exchange rate refers to the price of one nation's currency in terms of another nation's…

Q: How is the performance of Philippine economy in the year 2020 in terms of

A: Exchange rate, the cost of a country's cash according to another nation's cash. A conversion scale…

Q: Why Pakistan stopped using pegged exchange rate system and started using free float system? What…

A: Since you have asked a country-specific question, we will be answering in a general way as per the…

Q: Give an examples and non-examaples of foreign direct investment

A: Through business investments, private companies and non-governmental organizations increase their…

Q: There is a euro zone recession. What part of US GDP is MOST impacted by a Eurozone recession?

A: The following problem has been answered as follows:

Q: What is the value of the balance of trade? balance of trade: $ What is the value of the current…

A: Balance of trade refers to net value of trade which can be calculated through difference of total…

Q: The interest rate is 4.4% in the EU, and 5.6% in the US. The expected year end exchange rate is…

A: Interest rate parity (IRP) is the equation that explains the relationship between exchange rate and…

Q: 1 US $ = _______ Chinese Yuan 1 Chinese Yuan = _______ US $ 1 US $ = _______ EURO 1 EURO = _______…

A: The current exchange rates are:1 US $ = 7.03 Chinese Yuan1 Chinese Yuan = 0.14 US $

Q: Exchange rate topic: When the exchange rate changes, will the European divers on vacation overseas…

A: The global currency market, often known as the foreign exchange or FX market, is a decentralized…

Q: Describe the currencies that the MNC uses to conduct its international business, reasons behind the…

A: Multinational Companies generally use the most convertible currencies to conduct their international…

Q: Assume there has been an increase in the volume of exports from South Africa to the United States.…

A: Given that there has been an increase in the volume of exports from South Africa to the United…

Q: 4.2 million people make up a nation's population. The GNP is 6132 million dollars. The per capita…

A: Each nation chooses the regime of exchange rates that will be used for its respective currency. A…

Q: Problem 9 Intro Assume that the real interest rate is 2% everywhere. The annual nominal interest…

A: Interest Rate in US = 3.8% = 0.038 Interest Rate in Mexico = 5.3% = 0.053 Fisher Effect is given…

Q: What impact does a depreciation of a country's currency have on its balance of trade? A. It…

A: The issue is to grasp the effect of a country's money deterioration on its equilibrium of exchange.…

Q: Most of the gadgets that a firm sells in the Countries are made in China. What is the effect of a…

A: An international exchange rate, also said as a foreign exchange rate. It is the price of a currency…

Q: What are effects of US appreciation and CNY depreciation on other countries? How do other countries…

A: Currency alludes to an arrangement of money in everyday use in a specific nation or economic…

Q: If the real exchange rate between Turkish lira and U.S. dollar is 3.50, the price level in Turkey is…

A: Real exchange rate = Nominal exchange rate * Price level in domestic country/price level in a…

Q: European Central Bank will keep its aggressive monetary stimulus that is, expansionary monetary…

A: The most generally perceived fruitful execution of money related approach in the U.S. happened in…

Q: When you are selling Omani Rial for getting US Dollar it is related to? a. Interest rate b.…

A: Given: Selling of Omani Rial to get US dollar.

Q: currency Y depreciate against USD by _________% Let’s say currency Y used to be at 1=$1 USD on fixed…

A: Depreciation is the decrease in the value of the currency in terms of other currency.

Q: Assume that the export price of a Sony Smartphone from Naguya, Japan is VIS. The exchange rate is…

A: Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for you. If…

Q: what is the relations between exchange rate and Bop

A: The BOP is a summary of all transactions between entities in one country and the rest of the globe…

Q: Explain the causes of current account deficit, and how CAD is affecting the economy of Pakistan?

A: A deficit of CA {current account} is described as a measurement of trade that states that a nation…

Q: Examine possible causes of the largest ever recorded trade in goods deficit

A: A trade deficit happens when a country imports more than it sends out. For example, in 2018 the…

Q: Suppose the annual rate of inflation in the UK is 5.67%, and the annual rate of inflation in Europe…

A: (Q) Suppose the annual rate of inflation in the UK is 5.67%, and the annual rate of inflation in…

Q: 1. Suppose that in our economy Income = Expenditure. If G = 1100, T = 900, S = 50, and I = 90. The…

A: In an open economy, when income is equal to the expenditure, then the gap between the savings and…

Q: How is fiscial policy in the United States, in support of Ukraine war efforts, affecting the U.S.…

A: Fiscal policy is the use of government spending and taxation to influence the economy. It is one of…

Q: Explain a Pakistan’s current investment climate

A: Since taking power in August 2018, Pakistan's administration has intensified its positive rhetoric…

Q: Most of the gadgets that a firm sells in the Philippines are made in China. What is the effect of a…

A: Introduction- We have to assume that a firm sells the product in the Philippines and the product…

Q: help please answer in text form with proper workings and explanation for each and every part and…

A: To determine whether the currency of country A (presumably referring to the UK with GBP) should…

Q: If a German firm's cost of goods sold in UK is much greater than its sales in UK, the appreciation…

A: Foreign exchange risk, also known as currency risk, in economics is defined as the risk that arises…

Q: the Central Bank of China announces that the yen will trade from tomorrow onwards at 5 to the dollar…

A: Answer is given below

Q: Write a short essay (max 150 words) analyzing the following. The US has been maintaining a current…

A: Current account The balance of payment is the statement that shows the money flow of the country.…

Question

During 2014 till 2016, Malaysian exchange rate faced a depreciation. Based on this situation, what is the reason of the depreciation happen in that year?

Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Somebody has bought US Dollar with two-third of his money and Euro with one-third. Dollar has gained value overnational currency by 1.8 % each month and Euro 1.2 % each month. The average monthly inflation rate is 3. Find thepercentage loss of him/her at the end of a year.
A rise in the real exchange rate is called (a) a real depreciation. (b) a real bargain. (c) a real devaluation. (d) a real appreciation.
discuss Appreciation and Depreciation of Currencies
! Who benefits from an appreciation of the Swiss Franc? Who benefits from a depreciation of the Swiss Franc? Why would the Swiss government be concerned about a strong appreciation of the Swiss Franc?
Question 38 If you go to the bank and notice that a dollar buys more Ghanaian cedis than it used to, then the dollar has appreciated. Other things the same, the appreciation would make Americans less likely to travel to Ghana. O appreciated. Other things the same, the appreciation would make Americans more likely to travel to Ghana. depreciated. Other things the same, the depreciation would make Americans less likely to travel to Ghana. depreciated. Other things the same, the depreciation would make Americans more likely to travel to Ghana.
What is the connection between the Higher net income of central bank ang foreign exchange gains?
Based on the latest statistics published by Bank Negara Malaysia, Ringgit Malaysia has depreciated by 4.9% against US dollar during the first quarter of year 2020. Explain how the currency depreciation will affect export, import and the balance of trade of the country.
Which of these situations will cause the depreciation in the value of the UAE Dirham? a. Increase in the exports of oil and less imports of other things b. Lower exports of oil and an increase in gross domestic product c. Lower exports of oil and a decrease in the gross domestic product d. Increase in the price of oil and increase in exports of minerals and gas
A 144.
Question One Provide short answers: Assume the consumer price index in France rises from 250 at the end of the year to 265 at the end of the next year, how much inflation was there in France during that year? Describe the difference between a price level and a price index. Outline the theory of absolute purchasing power parity. During our discussion of absolute purchasing power parity we frequently referred to the law of one price. Write a short note on the logic of the law of one price and consider why this condition may be violated.
1D
Depreciation of a currency is always the result of a purposeful strategy set in place by a central bank. A. True B. False