Define why it is hard to maintain a fixed exchange rate, Financial Management

Assignment Help:

Once capital markets are integrated, it is hard for a country to maintain a fixed exchange rate. Explain why this may be so.

Answer: one time capital markets are integrated internationally; vast amounts of money may flow in and out of a country in a short time period. This will make it very hard for the country to maintain a fixed exchange rate.

Related Discussions:- Define why it is hard to maintain a fixed exchange rate

Forward rates, Now that we have seen how default-free theoretical rat...

Now that we have seen how default-free theoretical rate can be extrapolated from the treasury yield curve, let us see how some other additional information, like forwar

Calculate the new interest rate and excel function pv, Continuing growth of...

Continuing growth of the company has required that we issue the company''s corporate debt soon. As you know, in 6 months we plan to issue $10 million worth of 20-year corporate bon

Cash vs. accrual accounting, Cash vs. Accrual Accounting: While it is b...

Cash vs. Accrual Accounting: While it is beyond the scope of this module to assess accounting systems against all types of accounting styles, it is important that managers unde

Determine the calculation of materiality, Determine the calculation of mate...

Determine the calculation of materiality For example: Turnover 1% -1.5% Net assets 1% -2% Net profit 2% -6% Whatever numbers are selected they would be based on r

Determine the valuing equity securities, Determine the Valuing Equity Secur...

Determine the Valuing Equity Securities Unlike debt and money market instruments, equity instruments represent ownership interest in the company. As owners should put in their

Quantitative analysis, Your task is to prepare a presentation for a group o...

Your task is to prepare a presentation for a group of board members who are considering an investment of $100 million in your company. Your presentation will consist of three disti

Review of accounting, 30

Time series and demand forecasting, Time Series and Demand Forecasting ...

Time Series and Demand Forecasting The process of budgeting in many organizations starts with a forecast of demand for the products in the forthcoming year and the sales f

Define price ceiling make consumers better off, How can a price ceiling mak...

How can a price ceiling make consumers better off? Under what conditions might it make them worse off? If the supply curve is completely inelastic a price ceiling will raise c

Accept-reject rule, Accept-Reject Rule: The decision rule is to accept ...

Accept-Reject Rule: The decision rule is to accept the project if the computed payback period is less than the standard. If not, reject it. While ranking the projects, projec

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages