From base price levels of 100 in 2016, price levels in Malaysia (currency is MYR) and...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
From base price levels of 100 in 2016, price levels in Malaysia (currency is MYR) and the United Arab Emirates (currency is AED) in 2019 stood at 104 and 111, respectively. Assume that (relative) PPP holds. The spot exchange rate in 2016 was 0.1395 AED per MYR Q 11: What should (according to PPP) the exchange rate have been in 2019? Give your answer in number of AED per MYR correct to 3 decimal places. Q 12 If, in fact, the exchange rate (expressed as the number of AED per MYR) turned out in 2019 to be 0.1420, what can be said in respect of the currency movements over the period 2016 to 2019? Pick the most appropriate and accurate choice. a) The MYR strengthened in nominal terms and strengthened in real terms. b) The AED strengthened in nominal terms and weakened in real terms. c) The MYR strengthened in nominal terms and weakened in real terms. d) The MYR weakened in nominal terms and weakened in real terms. e) The AED strengthened in nominal terms and strengthened in real terms. 4 From base price levels of 100 in 2016, price levels in Malaysia (currency is MYR) and the United Arab Emirates (currency is AED) in 2019 stood at 104 and 111, respectively. Assume that (relative) PPP holds. The spot exchange rate in 2016 was 0.1395 AED per MYR Q 11: What should (according to PPP) the exchange rate have been in 2019? Give your answer in number of AED per MYR correct to 3 decimal places. Q 12 If, in fact, the exchange rate (expressed as the number of AED per MYR) turned out in 2019 to be 0.1420, what can be said in respect of the currency movements over the period 2016 to 2019? Pick the most appropriate and accurate choice. a) The MYR strengthened in nominal terms and strengthened in real terms. b) The AED strengthened in nominal terms and weakened in real terms. c) The MYR strengthened in nominal terms and weakened in real terms. d) The MYR weakened in nominal terms and weakened in real terms. e) The AED strengthened in nominal terms and strengthened in real terms. 4
Expert Answer:
Related Book For
Posted Date:
Students also viewed these finance questions
-
The following financial information is for Caravelli Company. Of the total raw materials placed in production for the year, $36,000 was for indirect materials. The company had $3,795,000 in sales for...
-
The following financial information is for Lily Company, a non-U.S. firm with shares listed on a U.S. stock exchange. Net income, computed according to home country GAAP. . . . . . . . . . . . . . ....
-
The engines of most rockets produce a constant thrust (forward force). However, when a rocket is fired, its acceleration increases with time as the engine continues to operate. Is this situation a...
-
An electro-hydraulic positioning system is shown in Figure P11.38. Use the following values. K a = 10 V/A Ki = 10 2 in./V K 2 = 3 10 5 sec 3 K 3 = 20 V/in. z = 0.8 w n = 100 rad/sec t = 0.01 sec a....
-
How do you find the inverse of an upper triangular matrix?
-
What are some common reasons for resistance to control?
-
Describe how a taxpayer might assess the financial solvency and viability of a government using government-wide financial statements prepared according to generally accepted accounting principles.
-
Jan 1 st: issued 7 0 0 0 shares of 1 0 0 $ present value, 4 % preferred stock at par Jan 2 nd: Declared a 2 : 1 stock split on the common Feb 1 st: issued 6 0 0 0 shares of common stock for equipment...
-
A highway has an optional toll lane that drivers may take to reduce the time they spend driving. Drivers pay a small fee to enter the toll lane ($0.25). Then, once they leave the toll lane, they pay...
-
Puffy Clouds, a maker of data storage products, is considering adding a new manufacturingfacility. The new facility would be housed in an unused building that the firm bought 8 yearsago for $600,000...
-
You are the manager of a soccer team, and you need to decide which players to trade for the next season. Table 1 below describes the current players on your team that are up for contract renewal,...
-
Vytrill Ltd makes two products, Alpha, and Beta. The following data is relevant for year 3: Material prices: Material M Material N R2 per unit R3 per unit Direct labour is paid R10 per hour....
-
Crossland would like to move to just-in-time (JIT) system of purchasing its goods from Essel and as a result Essel is contemplating major changes to its working practices. Essel's CEO has asked you,...
-
The roots of an equation are values that make it zero. For example, x - 1 X 0 (x 1)(x + 1) = 0 I Then x = 1 or x = -1 makes eq. 13 zero. Let's verify this. Taking x = 1 1 1 = 1-1=0 I1 (15) For a...
-
Consider a logistic map defined by the recursive relation Xn+1 = n (1 - n), (1) defined within the parameter range 0 < < 4. (a) Write (and attach) PYTHON code to simulate the logistic map. For an ap-...
-
Business Driven Information Systems. The article and questions are below. Wiki Your Way Wikis are web-based tools that make it easy for users to add, remove, and change online content. Employees at...
-
Havel says the grocer doesnt believe what is on the sign and indeed, he says the grocers customers will barely notice it. But Havel maintains that the sign serves a specific function. How would you...
-
Access Products, Inc., incurred the following actual overhead costs for the month of November. Overhead is applied based on a predetermined rate of $24 per machine hour, and 5,100 machine hours were...
-
Biltmore Products, Inc., had the following activity for the month of July. Required: Prepare an income statement for the month of July. Sales revenue Selling expenses General and administrative...
-
A colleague states, We produce one product, and our operations are relatively simple. Activity-based costing and activity-based management would be a waste of time for our company! Do you agree with...
-
From where test data (to test the system) are made available? (a) Live environment (b) Test libraries (c) Dummy data (d) All of these
-
______________ approach of systems conversion gives double security with minimum amount of risk but causes high effort and time. (a) Direct (b) Parallel (c) Prototype (d) None of these
-
_____________ requires training of the new system developed. (a) Users (b) Systems operators (c) Vendors (d) All of these
Study smarter with the SolutionInn App