Estimate the profits that the bank can earn

Assignment Help Business Management
Reference no: EM133085967

1. Do you think a negative balance of payment is always bad for a country? Why or why not? Use critical thinking while answering the question based on our country 'Bangladesh'. 

2. Regent bank speculates that the Russian Rubel will depreciate against the dollar from its spot rate of $.17 to $.16 in 7 days. The current following interbank rates are stated below:

Currency

Lending Rate

Borrowing Rate

US $

8.0%

8.2%

Russian Rubel

8.5%

8.6%

Assume that Regent Bank has borrowing capacity of either 8 million US $ or 80 million Russian Rubel in the interbank market based on the currency it wants to borrow.

I. How Regent bank can capitalize on its expectations without depositing funds? Estimate the profits that the bank can earn using this strategy.

II. Regent bank speculates that the Russian Rubel will appreciate from its present spot rate of $.17 to $.18 in 10 days. How could it try to capitalize on its expectation without depositing funds? Estimate the profits that the bank can earn using this strategy.

Reference no: EM133085967

Questions Cloud

Compute benefit cost ratio : Maintenance cost is estimated to be RM 50 million a year and expected to be increasing at 7% per annum. Compute Benefit Cost Ratio
Discuss a negotiation approach : Discuss a negotiation approach which should be used to get the contract. Justify your reasons for using the chosen approach.
Explain the link between gatt and wto : Explain the link between GATT (General Agreement on Tariffs and Trade) and WTO (World Trade Organization). What is their purpose of establishment?
Future changes in the industry landscape : What competitive advantage could a skilled HR manager deliver in an organization that is committed to improving its talent management?
Estimate the profits that the bank can earn : 1. Do you think a negative balance of payment is always bad for a country? Why or why not? Use critical thinking while answering the question based on our count
Prepare a fixed budget income statement : Casco actually produced and sold 42,000 units. Using a contribution margin format: (a) Prepare a fixed budget income statement for the planned level of sales
What is the book value per share of mayer common stock : Meyer has 1,000 shares of 8% cumulative preferred stock outstanding, with a par value of $100. What is the book value per share of Mayer common stock
What are pros and cons for chase strategy : What are pros and cons for chase strategy?
What we need to identify : To calculate available capacity, what we need to identify?

Reviews

Write a Review

Business Management Questions & Answers

  How organizations implement their it systems

Does the public have the right to know how organizations implement their IT systems?

  Differences of the railway labor

Discuss the similarities and differences of the Railway Labor Act and the Labor Management Relations Act.

  What specific changes could jim implement to improve.

David Abruzzo is the newly elected president of the Metrocity Striders Track Club (MSTC). One of his duties is to serve as the coach for runners who hope.

  Recommendations for improvements to the marketing mix

Provide DETAILED descriptions of all the elements of the current marketing mix for a Monopoly game-board toy product in the Australian toy market.

  Why kelso sells the note to littleton bank

The price is $900 per month. Julie's pays six months in advance with a note for $5,400. One month later, Kelso sells the note to Littleton Bank for $5,100. At the time the note is sold, Kelso is?

  Greatest external threat

Identify what is the greatest external threat to Disney. The threat should be specific to Disney. Justify why this is a threat to be the greatest.

  Assignment on supply chain management

Based on the availability of online data, select any multinational organization (Like Amazon, etc) and measure the performance

  What is the eoq

In the basic EOQ model, if annual demands is 250, carrying cost is $4.00 per unit per year, and ordering cost is $25.00. What is the EOQ?

  Adjustments made in the balance sheet

Explain how profit is tracked in the balance sheet. That is, where are the adjustments made in the balance sheet to keep track of the profit on the Asset Side of the balance sheet.

  Calculate the average access delay for a drive

Calculate the average access delay for a drive with HTH switching time of 3 ns, 6 R/W heads

  Marketing campaign for the business

Dave has had a really good idea for a marketing campaign for the business he works for.

  Margin of error associated with confidence interval

Using the sample data, what is the margin of error associated with a 99% confidence interval (to 2 decimals)?

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