Quotations for the spot rate of the british pound

Assignment Help Business Economics
Reference no: EM132118715

As the Sports Exports Company exports footballs to the United Kingdom, it receives British pounds. The check (denominated in pounds) for last month's exports just arrived. Jim Logan (owner of the Sports Exports Company) normally deposits the check with his local bank and requests that the bank convert the check to dollars at the prevailing spot rate (assuming that he did not use a forward contract to hedge this payment). Logan's local bank provides foreign exchange services for many of its business customers who need to buy or sell widely traded currencies. Today, however, Logan decided to check the quotations of the spot rate at other banks before converting the payment into dollars.

Do you think that Logan's bank is likely to provide more reasonable quotations for the spot rate of the British pound if it is the only bank in town that provides foreign exchange services? Explain.

Reference no: EM132118715

Questions Cloud

What are the steps to solve question : What are the steps to solve this question? This is a Finance question. This is a practice question. I actually already know the answer
How the macroeconomy would evolve in response to the shocks : The oil price shocks of 2006-2009: Between 2006 and the middle of 2008, oil prices rose sharply - from around $60 to more than $140 per barrel.
Explain the macroeconomic consequences : A decline in foreign demand for U.S. goods: Suppose the European and Japanese economies succumb to a recession and reduce their demand for U.S. goods.
Has the auditor complied with independence requirements : HI6026 : In relation to the key audit matters, which audit procedures were performed to provide assurance over each matter?
Quotations for the spot rate of the british pound : Do you think that Logan's bank is likely to provide more reasonable quotations for the spot rate of the British pound if it is the only bank
How would the economy respond differently : Why does the AS curve slope upward? If the AS curve were more steeply sloped, how would the economy respond differently to aggregate demand shocks (shocks to a)
Account with a quoted annual interest rate : How many years will it take for 197,000 to grow to 554,000 if it is invested in an account with a quoted annual interest rate of 8% with monthly compounding
Would these fortescue bonds be an attractive asset : Would these Fortescue bonds be an attractive asset for investors? Why or why not?
What is the annual equivalent cost of replacing the vehicle : What is the annual equivalent cost of replacing the vehicle every 5 years? Assume your cost of capital is 5.1%. Enter your answer to the nearest cent.

Reviews

Write a Review

Business Economics Questions & Answers

  Opportunity cost of starting up the business

If the interest rate is 10%, then what, according to an economist, is the opportunity cost of starting up the business?

  The market is initially in equilibrium

In the following situation, the market is initially in equilibrium. After each event described below, does a surplus or a shortage exist at the original equilibrium price? What will happen to equilibrium price as a result? Draw your answer in GRAPH F..

  How many calories will she consume

If she has to eat only whole servings, what will she have for breakfast, and how many calories will she consume? If she can eat partial servings, how would your answer differ?

  About the pricing problem

Suppose as a manager of a profitable department store you are confronted with a pricing problem. You have two types of customers: a high-end type that are willing to pay a price of $25 for a pair of Levis Jeans, and a low-end type customer that are w..

  Polygraph effective investigative techniques

Why are criminal profiling, hypnosis, and the polygraph effective investigative techniques? Is there a specific criminal case that supports one of these?

  Implications for global economy and international business

Give a concise description of the reasons it is provocative, its implications for global economy and international business and attempt to answer my question.

  Illustrate the effectiveness in reducing consumption

Suppose the government intends the tax to reduce the consumption of some goods for example, cigarette or chewing gum. Illustrate what will determine the effectiveness of the tax in reducing consumption

  Firms can have-accounting profits and economic losses

Firms can have: Accounting profits and economic losses, Accounting profits and economic profits, Accounting losses and economic losses, Accounting losses and economic profits.

  Indicate whether expect demand to be inelastic or elastic

For every of the subsequent goods, indicate whether you expect demand to be inelastic or elastic also explain your reasoning

  What laws in cuba are restricting them from leaving legally

For the past few years, Cuban baseball players have been leaving their country illegally to play professional baseball in the United States. (Ex. Yasiel Puig, Rusney Castillo, Jose Abreu). What laws in Cuba are restricting them from leaving legally? ..

  Unified system to two completely independent systems

You are the director of a Washington, D.C., think tank focusing on tax and economic policy issues. You were recently (and informally) contacted by staff of the Congressional Joint Committee on Taxation to weigh in on a number of issues currently unde..

  Impact of distributing the motorcycles

What is the impact of distributing the motorcycles through MC Dealership, LLC on the price of the motorcycles?

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