What should happen to the us interest rate

Assignment Help Business Management

Reference no: EM131278491

In July, the one-year interest rate is 12% on British pounds and 9% on U.S. dollars.

a. If the current exchange rate is $1.63 : £1, what is the expected future exchange rate in one year?

b. Suppose a change in expectations regarding future U.S. inflation causes the expected future spot rate to decline to $1.52 : £1. What should happen to the U.S. interest rate?

Reference no: EM131278491

Questions Cloud

What were the real interest rates in france and germany : Based on these figures, what were the real interest rates in France and Germany?- To what would you attribute any discrepancy in real rates between France and Germany?

Would you classify this person as leader or manager and why : Would you classify this person as a leader or manager? Why? Identify constructive or destructive communication behaviors this person exhibits.

What is your county plan to address these issues : What are the demographics (e.g., age, ethnicity, socioeconomic status, employment status, and education makeup, if available) of your county? What are the identified most pressing health issues in the community?

Reflecting on different approaches to strategy : This week, the focus has been on reflecting on different approaches to strategy and the capability of those to utilize existing positions and strengths versus their encouragement of the development of alternative or creative outcomes.

What should happen to the us interest rate : Suppose a change in expectations regarding future U.S. inflation causes the expected future spot rate to decline to $1.52 : £1. What should happen to the U.S. interest rate?

Create a plan for a local event in your area : Create a master plan with all the steps necessary for holding a meeting or seminar on careers in hospitality management. Create a plan for a local event in your area. List all the headings and formulate a budget.

Determine the horizontal component of the force : Determine the horizontal component of the force that the air jet exerts on the vane. Neglect the weight of the air and all friction.

What is best estimate of one year forward exchange premium : To the nearest whole number, what is the best estimate of the one-year forward exchange premium (discount) at which the pound will be selling relative to the euro?

Two crashing problems and four earned value problems : In this homework assignment, you will be working through two crashing problems and four earned value problems. All the information you need is included within this Homework packet. Make sure you answer all parts of the questions in their entirety.

User Account

All Pages