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You have just graduated from the Information Communication University (ICU) of
Lusaka in Zambia and are leaving on a whirlwind tour to see some friends. You wish to
spend USD 1,000 each in Germany, New Zealand, and Great Britain (USD 3,000 in total).
Your bank offers you the following bid-ask quotes:
USD/EUR 1.304-1.305, USD/NZD 0.670.69, and USD/GBP 1.90-1.95.
(a) If you accept these quotes, how many EUR, NZD, and GBP do you have at departure?
(b) If you return with EUR 300, NZD 1,000, and GBP 75, and the exchange rates are unchanged, how many USD do you have?
(c) Suppose that instead of selling your remaining EUR 300 once you return home, you want to sell them in Great Britain. At the train station, you are offered GBP/EUR 0.66-0.68, while a bank three blocks from the station offers GBP/EUR 0.665-0.675.
i) At what rate are you willing to sell your EUR300?
ii) How many GBP will you receive?
Mrs Ireen Ndhlovu kaleji has US$ 2,000 which she is planning to exchange with Zambian Kwacha. She inquires from the bank and is given the following information:
Ask price Bid price
1 USD K10 K9.5
1 ZWM K0.806 K0.79
The other information showed the following:
Ask price Bid price
1 ZMW US$ 0.10 US$ 0.105
1 ZMW ZAR 1.241 ZAR 1.268
a) Explain to Mrs. Kaleji the differences of the quotations given above
b) Explain to Mrs. Kaleji the differences between BID and ASK prices in exchange rate
c) How much Zambian kwacha is Mrs Kaleji expecting to be given by the bank if she sells US$ 2,000
d) How much South African is Mrs Kaleji expecting if she sold US$ 2,000 to the bank
e) Explain the functions of the exchange rate in international trade
Pattison family considers the opportunity to finance the purchase of their first $500 thousand worth
single-family house in Santa Rosa, CA. To qualify for a 30-year fixed-rate mortgage, the down
payment should be 10% of the purchase price. To accumulate money for the down payment, Mr.
Pattison plans to invest $35,000 in the stock portfolio that earns 7.65% per annum. Assume that Mr.
Pattison reinvests annual gains at the same interest rate as the initial investment. How much money
will Mr. Pattison accumulate with this investment within five years? Is the initial investment
amount sufficient to accumulate in five years the required down payment under the above
mortgage? Round your answers to the nearest dollar.
In 1.5 pages, review the fiscal and monetary policy actions adopted by Fiji to address the negative impacts on Inflation, discuss these policies and explain how these policies would address the negative impacts.
Assume that there is an increase in the price of petroleum ..using a graph illustrate and explain the effects of this on output and commodity price in the economy?
Two goods have a cross-price elasticity of demand of +1.2 (a) would you describe the goods as substitutes or complements? (b) If the price of one of the goods rises by 5 per cent, what will happen to the demand for the other good, holding other factors constant?
In 1.5 pages, review the fiscal and monetary policy actions adopted by Fiji to address the negative impacts on these three macroeconomic variables, discuss these policies and explain how these policies would address the negative impacts.
How do you identify a customer’s buying motives?
Why is it important to evaluate a customer’s responsiveness to a product’s features, advantages and benefits?
Explain Client requirements and Products that satisfy them
#340153 on Dec 2023