Consider an investment in an international venture. Identify the advantages and disadvantages of this investment based on the capital structure of the firm. based upon the following: -Forecasting the foreign currency exchange rate -Interest rate parity and forecasting -Foreign investment policies -Government limitation
You serve as a staff economist for the Board of Governors of the Federal Reserve System. It is decided that an increase in the money supply is the correct policy, given the current economic situation. Which list of monetary policy actions would be appropriate? A. Open-market purchase, higher discount rate, higher required
1. When you have $1,000 in a savings account at a bank: A) the bank holds a financial asset of $1,000 and you hold a financial liability of $1,000. B) the bank holds a financial liability of $1,000 and you hold a financial asset of $1,000. C) both you and the bank now have a financial asset of $1,000. D) both you and the
You are currently running your own small business with annual revenue of $150k and accountant costs of $60k. If you close your business, you could sell your computer and other equipment for $2k and make a 10% annual interest on it.
What is a corporation? (a) Explain the different types of corporations in this answer. (b) Describe the major characteristics of a large publicly traded corporation.
What is the Federal Reserve (Fed) all about? Which Federal Reserve District Bank is closest to you? Who is the current Chairman of the Fed? Should the Fed remain independent from political authority or should the President and Congress have a say in their operations? Why? Why not? What is FOMC? What is the current Federal Funds
Interpreting Macroeconomic Indicators Analyze several indicators of the macroeconomic conditions in an economy, such as interest rates, income, and other indicators such as CPI, inventory levels, wage rates, consumer confidence, etc. You may chose from these indicators: Economic growth Unemployment Inflation
1. Describe the three tools of monetary policy. 2. Find an article that shows a change in the US monetary policy. 3. State the objective of this monetary policy. 4. Discuss the expected outcomes of that policy. 5. Summarize how this monetary policy has affected (is affecting) the economy through change in the mon
A firm developed the following national economic projections for the coming year: Exports totaled to $648B, and imports totaled to $852B. Capital outflows totaled to $384 and capital inflows totaled to $504. During the year it appears that these projections are quite accurate. (a) Discuss what will eventually happen to the
a) When the salvage value is in year 4, and b) When the salvage value is in year 5. Machine 1 Machine 2 Machine 3 Initial Cost $800,000 $650,000 $575,000 Annual Operating Cost $50,000 $90,000 $105,000 Salvage value $40,000 $32,500 $28,750 Hint: A cash flo
Read the most recent report by the Federal Reserve Chairman. * What is monetary policy * Tools of monetary policy * Issues in evaluation of monetary policy
Do government statisticians calculate GDP by simply adding up the total sales of all business firms in one year? Explain.
Economists generally agree that high budget deficits today will reduce the growth rate of the economy in the future. Why? Do the reasons for the high budget deficit matter? In other words, does it matter whether the deficit is caused by lower taxes, increased defense spending, more job-training programs, and so on? In your analy
In a 2009 Newsweek article, The 50 Most Powerful People List, there are 3 bankers who are listed as the 4th, 5th, and 6th most powerful people in the world. Read the following article on the "Economic Triumvirate": Downloadable pdf version: The Global Elite: Economic Triumvirate, or go to http://www.newsweek.com/id/176288
Describe the monetary policy tools the Federal Reserve uses to stabilize the economy and maintain price stability.
Question One Contrast the revenue sources of state and local government vs. the federal government. What are the primary sources of funding for the two levels of government? Contrast the allocation of spending for state and local government vs. the federal government. Why do you think the two levels of government
Empirical evidence suggests that individuals who invest n higher education benefit from a substantial 'education premium', i.e. their future salaries are on average higher than those of individuals with only a high school diploma. (a) What are the costs of higher education? What method would you use to assign a monetary valu
2. Suppose that the Federal Reserve sells $5 million worth of government securities to General Motors. What is the effect on the quantity of bank reserves? 3. "When the Fed increases the legal reserve requirements, it loosens credit, because the banks have more reserves," Comment and evaluate. 4. If the Federal Reserve
Explain the different measures of the money supply, and explain why the different definitions are important.
Of the following three activities one is included in the calculation of GDP: - Cleaning your house yourself; - Hiring a cleaning service to do it; - Selling illegal drugs on the street. Which is included and why aren't the other two included?
I need some assistance, based on current news, please describe the state of the economy, government fiscal policy and Fedâ??s monetary policy by answering the following questions. Please provide citation where possible 1.What stage of the business cycle is the economy going through? Give several major econ indicators, for ex
This problem relates to the Money Multiplier rather than the spending multiplier. This is a very important problem on money creation. The First National Bank has reserves of $150,000 and demand deposits equal to $1,200,000. The reserve ratio is 10 percent. How much in excess reserves does the bank now have? What is the maximu
There is no doubt that the Fed, the Central Bank of the United States, plays an enormous and often successful role in the economy. Can they do something about the budget deficit? Is there a relationship between fiscal and monetary Policy?
What is the Money Multiplier? How does the Federal Reserve System shape the Monetary Policy?
Most economists consider interest rates to be the principal instrument by which monetary policy affects economic activity. However, significant changes in the structure of financial markets have altered the interest rate channel. Do you agree or disagree with this point of view? 419 words, no references
Please explain each questions in detail and include and charts or graphs as needed.
For the past 3 years a major department store chain has averaged approximately $10 billion in long-term debt. Their debt is in the form of bonds that have been sold to investment funds and the public (If you are not sure what a corporate bond is look it up on the internet). For the sake of argument, let us assume that either n
2.An elderly consumer's only income is his monthly Social Security check. Last year, food cost $5 and clothing cost $10 per unit, and he bought 100 units of food and 25 units of clothing each month, exhausting his monthly Social Security check of $750. This year, the price of food is $8 and the price of clothing is $12. So that
Please help with the following problem at least 200 words. Explain the effect of U.S. expansionary monetary policy on the U.S. economy if exchange rates are flexible. How would the effectiveness of an expansionary monetary policy change if exchange rates were fixed?
What are the uses of money? How do banks create money? Is monetary policy conducted independently in the United States and is the intended effect always achieved? Why or why not?