You hold $12,000 in cash and the exchange rate of USD (American dollar) to Venezuelan bolivaris 10.15. Calculate how much your $12,000 are worth in Venezuelan bolivars (you will need thisnumber for the calculations below).Now, suppose that you hold as much cash in bolivars, as you found above. But the exchangerate of USD to Venezuelan bolivar goes down to 9.85. How much would your cash amount inbolivars be worth in USD?Question 29 options:A)$120B)$11,643$12,000D)$12,365

First, let us calculate how much $12,000 is worth in Venezuelan bolivars using the initial exchange…

Answered: You hold $12,000 in cash and the…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

At the end of 2021 , the Federal Reserve took an inventory of its foreign currency reserves. Since the previous year, the following had change Currency Yen (+1-) Change (millions) -26.17 -22.80 Yuan US Dollars 47.57 92.04 Rupees Riyals Pesos 85.61 38.33 Shekels |-30.87 How much did NCO change during this time period? Round to two (2) decimal places
Please see photo
Over the past 20 years, Brazil has experienced relatively high inflation while Japan has experienced relatively low inflation. What do you think has happened to the number of Brazilian reais a person can buy with a Japanese yen?
A UK-manufactured car sells for GBP 14.000. A french-manufactured car sells for EUR 15.750. If the EUR/GBP exchange rate is 1.17, how much does the french-made car cost in GBP? a. 13.467 b. 14.500 c. 16.380 d. 18.427
Imagine you are a German investor trying to decide whether to buy American or European bonds. A ten-year bond issued by America’s Treasury today offers about 3%; German bonds return only 1.2%. But buying American means taking a gamble on the euro-dollar exchange rate. You are interested in the return in euros. The bond issued in the US will be attractive only if the extra yield exceeds any expected loss due to swings in currency markets. This thinking explains why the dollar has recently soared against the euro. In July 2022 the dollar reached a one-for-one exchange rate with the euro for the first time since 2002. Is it always true that a currency appreciates in value when the interest rate it offers increases relative to foreign interest rates? Explain.
George Soros famously bet against the pound in 1992 reportedly earning $1bil in profit. He has since earned (and lost) additional sums by better against other currencies. Explain the concept of Interest Rate Parity (uncovered) and what strategy Soros may have used if his expectations of the future value of a currency differed from the markets.
e. The exchange rate of the Dirham, the currency used in Morocco, is generally determined by demand and supply. However, if the currency price goes below a set lower limit (minimum) or above a set upper limit (maximum) compared to the US dollar, then Morocco's central bank will adjust the Dirham exchange rate by buying or selling the Dirham against other currencies. What kind of exchange rate system is being used by Morocco and why do you think so? Explain 2 advantages of using this type of exchange rate system. On the 4th of July 2022, the exchange rate from the US dollar to Dirham was $1 to DH 10.01. On the 1st of September 2022, the exchange rate had changed to $1 to DH 10.57. Explain and justify if the Dirham appreciated or depreciated in value against the US dollar between July and September 2022.
The following graph plots the forward premium for a foreign currency along the horizontal axis, while measuring the interest rate differential (between a home country and a foreign country) along the vertical axis. in refers to the interest rate in the home country, while if refers to the interest rate in a foreign country. On the following graph, use the blue line (circle symbol) to plot the combinations of the forward premium and interest rate differential that are consistent with interest rate parity (IRP). ih - if (%) 7 6 -7 -6 -5 -4 -3 -2 5 4 3 2 0 -1 -2 -3 -4 -5 -6 -7 -1 1 2 3 4 5 6 7 Forward Premium (%) IRP Line ?
Between 1879 and 1914, the world's major nations adhered to the gold standard. Under the gold standard, a country maintained a fixed relationship between its stock of gold and its money supply. Suppose that Germany defined a German mark as 30 grains of gold, and the United States defined $1 as 60 grains of gold. Under the gold standard, a German mark would have been worth U.S. dollars.
Assume that you buy a 1-year, 168,000-peso Philippine bond that pays 9 percent when the exchange rate is 1 Canadian dollar for 42 pesos. If, after one year, the peso falls to 1 Canadian dollar equals 45 pesos, how much have you gained or lost in Canadian dollars? Round your answer to the nearest dollar amount. loss * $ 4353
Answer last two questions
Options are gain or loss. Note : don't use chat gp8

SEE MORE QUESTIONS

Recommended textbooks for you

ENGR.ECONOMIC ANALYSIS

Economics

ISBN:

9780190931919

Author:

NEWNAN

Publisher:

Oxford University Press

Principles of Economics (12th Edition)

Economics

ISBN:

9780134078779

Author:

Karl E. Case, Ray C. Fair, Sharon E. Oster

Publisher:

PEARSON

Engineering Economy (17th Edition)

Economics

ISBN:

9780134870069

Author:

William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

Publisher:

PEARSON

ENGR.ECONOMIC ANALYSIS

Economics

ISBN:

9780190931919

Author:

NEWNAN

Publisher:

Oxford University Press

Principles of Economics (12th Edition)

Economics

ISBN:

9780134078779

Author:

Karl E. Case, Ray C. Fair, Sharon E. Oster

Publisher:

PEARSON

Engineering Economy (17th Edition)

Economics

ISBN:

9780134870069

Author:

William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

Publisher:

PEARSON

Principles of Economics (MindTap Course List)

Economics

ISBN:

9781305585126

Author:

N. Gregory Mankiw

Publisher:

Cengage Learning

Managerial Economics: A Problem Solving Approach

Economics

ISBN:

9781337106665

Author:

Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:

Cengage Learning

Managerial Economics & Business Strategy (Mcgraw-…

Economics

ISBN:

9781259290619

Author:

Michael Baye, Jeff Prince

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS