Holding a canadian treasury bill

Assignment Help Macroeconomics
Reference no: EM132786600

-Suppose you expect the British pound to depreciate by 6 percent over the next year. Assume the Canadian interest rate is 4 percent. What interest rate would be needed on pound securities, such as government bonds, for you to be indifferent between buying those securities with your dollars today and then selling them in a year in exchange for dollars and buying Canadian securities?

-Discuss why you might want to hold a US Treasury bill if the return was 5 percent when you could make 5.5 percent by holding a Canadian Treasury bill.

Reference no: EM132786600

Questions Cloud

How has the covid-19 pandemic affected workers : How has the COVID-19 pandemic affected workers, unemployment, or particular labour markets?
How much will sales be : Assume three units of A are sold for each unit of B sold. How much will sales be in $ of product B at the breakeven point
Write a article on top rated jogging strollers : Write a two-page article on top rated jogging strollers. Compare the selected top jogging strollers and what makes them preferred to other jogging strollers
What is the meaning of the famous last line of candide : What is the meaning of the famous last line of Candide? "'All that is very well,' answered Candide, ‘but let us cultivate our garden.'" What does Voltaire mean?
Holding a canadian treasury bill : -Discuss why you might want to hold a US Treasury bill if the return was 5 percent when you could make 5.5 percent by holding a Canadian Treasury bill.
Did know that hallyu wave has the period distinction : Did you know that Hallyu/Korean wave has the period distinction before you take this class? If you were a fan of K-culture from the Korean Wave era
What is the most practical and easily applied lesson : What is the most practical and easily applied lesson you learned (leadership and communication)? What was the hardest to grasp
Reflect on your personal relationship to feminism : Reflect on your personal relationship to feminism - explain what your feelings are about theory, writing in general, feminism, and what you hope to gain
What would be the financial advantage : Assuming the company has no alternative use for the facilities that are now being used to produce the carburetors, what would be the financial advantage

Reviews

Write a Review

Macroeconomics Questions & Answers

  Inflation targeting be a good policy

Why might it be difficult for the Fed to formally adopt inflation targeting?  Would inflation targeting be a good policy for the Fed in the present economic environment

  In using the taylor rule

In using the Taylor Rule as a guideline for monetary policy, what are the pros and cons of using forecasted values of inflation and output rather than observed values of these variables?

  Describe the present economic crisis situation in europe

Describe the present economic crisis situation in Europe.  Why has it been so difficult for the Europeans to find a solution to this problem?   Comment on what implications the crisis may have for the rest of the world if Europeans are not able to ag..

  Long-term federal government budget problems

Question:. Explain why there are long-term Federal government budget problems. Explain why the base-line forecast of the CBO is misleading.

  Derive and compare demand curve

Question based on Derive and compare demand curve,  Derive Ambrose's demand function for peanuts. How does it compare with Johnny's demand curve for peanuts?

  Problem based on utility function

Problem based on  Utility Function - Problem,  Answer and explain the following using a diagram which is completely labeled.

  Laffer curve : tax rate and tax revenue

Question based on Laffer Curve : Tax Rate and Tax Revenue,  Do raising tax rates necessarily raise tax revenue? What factors affect how tax revenue changes when tax rates change?

  Problem - income elasticity of demand

Problem - Income Elasticity of Demand,  Interpret the following Income Elasticities of Demand (YED) values for the following and state if the good is normal or inferior; YED= +0.5 and YED= -2.5

  Positive balance of payment

Question Positive Balance of Payment: "Things will look good for the US if we could just get to where we are consistently running a positive Balance of Payments."

  Effect of recession on the investment curve

Comment on the effect of a recession on the investment curve (only) and on the level of savings, investment, and the equilibrium real interest rate in the financial crisis that hits United States first starting in fall 2007.

  Affect of falling domestic investment on trade surplus and

How will a fall in domestic investment affect the trade surplus and net capital outflows in the domestic economy, the trade deficit and capital inflows in the rest of the world.

  Crises in the banking sector and bank run

Banking crises crisis decreases depositors' confidence in the banking system. What would be the effect of a rumor about a banking crisis on checkable deposits in such a country?

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