Is foreign exchange reserves critical variable

Assignment Help Financial Management
Reference no: EM131320424

Is Foreign exchange reserves critical variable in a country's macro economic management? explain why and give examples of how a country can retain reserves.

Reference no: EM131320424

Questions Cloud

Company issues a? ten-year bond at par with coupon rate : A company issues a? ten-year bond at par with a coupon rate of 6.6?% paid? semi-annually. The YTM at the beginning of the third year of the bond? (8 years left to? maturity) is 7.7?%. What is the new price of the? bond?
Calculate the size of the fund at the end of the four years : our company has decided to set up a welfare fund with an initial payment of Ghc 275m which is compounded six-monthly over a four-year period at 20% per annum. Calculate the Size of the fund at the end of the four years. An entrepreneur purchased a pi..
Find effective annual rate of interest : In three years time, a considerable number of the plant and machinery in your company’s factory will need replacement. As the finance director of your company, you have estimated the amount of money that will be required for purchasing the replacemen..
Make your net price different from weighted forward price : If you placed a hedge on any given commodity and the hedge was perfect, the net price would be a weighted average price (index) of the forward price and the cash price. Describe how the real world would make your net price different from the weighted..
Is foreign exchange reserves critical variable : Is Foreign exchange reserves critical variable in a country's macro economic management? explain why and give examples of how a country can retain reserves.
Discount rate used to determine net present value of project : If a project's NPV is greater than zero, then the. The discount rate used to determine the net present value of a project is the. if a project's NPV is less than zero, then its IRR must be less than the WACC. The NPV of a relatively low-risk project ..
Company will maintain this dividend for the next six years : Burkhardt Corp. pays a constant $13.90 dividend on its stock. The company will maintain this dividend for the next six years and will then cease paying dividends forever. If the required return on this stock is 11 percent, what is the current share p..
What is the expected capital gain from the sale of stock : what is the expected capital gain from the sale of this stock at the end of the coming? year?
Flow chart for plain vanilla variable for fixed swap option : Create a table of payments and a flow chart for a plain vanilla variable for fixed swap option (examples for both of these can be found on slides 49 and 53 in Lecture 4-1b slides and videos). Assume a notional value of $100,000, a 3-year tenor with s..

Reviews

Write a Review

Financial Management Questions & Answers

  Developing plan to finance its asset base

McKinsee Inc. is developing a plan to finance its asset base. The firm has $3,000,000 in current assets, of which 20% is permanent, and $10,000,000 is in fixed assets. Long-term rates are currently 8%, while short-term rates are at 6%. McKinsee's tax..

  What will be the opportunity cost of the machine

In your new project, you are going to use a machine which has been put into operation for a couple of years. The original investment on these machines was $120,000 and cumulative depreciation is $80,000. If you sell it at its fair market value now, y..

  Assume the exact method of accumulation is in effect

Here is a question about mathematics of finance : Barbara makes a sequence of 28 semiannual deposits of the form x, 2x,x,2x,..... into an account paying a rate of 6.8 percent compounded annually. If the account balance 6 years after the last deposit ..

  About the public issue and private placement

Voodoo Donuts can choose between the two following issues: A) A public issue of $10 million face value of 10-year debt. The interest rate on the debt would be 8.5% and the debt would be issued at face value. The underwriting spread would be 1.5% and ..

  Prepare another infusion center capacity level forecast

Your checkbook balance shows $806.50. The bank statement shows $874.66. The bank paid you $2.50 in interest. You issued Checks 1501 ($85), 1507 ($50.16), and 1511 ($20.50), but they are not shown on the statement. What is the reconciled balance? Prep..

  Describe the impact of making a small increase

The volatility of a certain market variable is 30% per annum. Calculate a 99% confidence interval for the size of the percentage daily change in the variable.

  Dividend growth rate is expected-current stock price

Your company just paid a dividend of $2.00. The dividend growth rate is expected to be 4% for 1 year, 5% the next year, then 6% for the following year, and a constant 7% thereafter. The stock's required return (rs) is 10%. What is the current stock p..

  Calculate the EAC for each machine

Vandelay Industries is considering the purchase of a new machine for the production of latex. Machine A costs $3,084,000 and will last for six years. Variable costs are 40 percent of sales, and fixed costs are $225,000 per year. Calculate the EAC for..

  Find out the data rates and costs of t carrier services

Find out the data rates and costs of T carrier services in your area. -  Find out the data rates and costs of packet-switched and dedicated-circuit services in your area.

  Calculate the net benefits for each of the four years

Calculate the net benefits for each of the four years in real terms (in period 0 prices). Calculate the real (i.e. inflation adjusted) discount rate.

  Income tax advantages of making charitable gifts

Describe the income tax advantages of making charitable gifts during a person's lifetime, including items that would qualify for income tax deduction. Give some examples.

  Bond pays annual coupons and the next coupon

Beam Inc. bonds are trading today for a price of $1,160.73. The bond currently has 25 years until maturity and has a yield to maturity of 5.77%. The bond pays annual coupons and the next coupon is due in one year. What is the coupon rate of the bond?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd