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?
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “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 ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Why does emotional hijacking occur? a. People are hard-wired to feel emotions about a situation before they reason it out. b. People spend too much time developing self-awareness, so they become overly emotional. c.
Answers (1)
Do the following functions exhibit increasing, constant, or decreasing returns to scale? What happens to the marginal product of each individual factor as that factor is increased and the other factor held constant? a. q = 3L+2K b. q = (2L + 2K) ^.
Answers (1)
In accounting for a long-term construction-type contract using the percentage-of-completion method, the gross profit recognized during the first year would be the estimated total gross profit from the contract, multiplied by the percentage of
Answers (1)
Tedder Mining has analyzed a proposed expansion project and determined thatthe internal rate of return is lower than the firm desires.
Answers (1)
Voice is a principle of good communications One major reason to do an in-depth interview of top management and communicators before designing an effective employee communications program is to that can enhance "getting through" to employees.
Answers (2)
New Questions in Business
Alicia is the sole shareholder and CEO of ABC, Inc., an S corporation that is a qualified trade or business. During the current year, ABC has net income of $325,000 after deducting Alicia's $100,000 salary.
Answers (1)
Henry Edwards was injured in an accident caused by another driver who did not have insurance. Henry's medical expenses would be covered by: A. collision. B. no-fault coverage. C. bodily injury liability. D. uninsured motorists protection Its not B
Answers (1)
Oliver is a manager at a watch company. He believes that money is the sole motivator for workers, so he links workers' pay directly to their output. For each watch a worker produces, he or she receives $5.
Answers (1)
If the management decision problem is: "should a new product be introduced?" what is the most appropriate marketing research problem?
Answers (1)
Vaughn Manufacturing received a check for $24480 on July 1 which represents a 6 month advance payment of rent on a building it rents to a client. Unearned Rent Revenue was credited for the full $24480.
Answers (1)