Why do you think a country suddenly decides to peg its currency to the dollar or some

Question:

Why do you think a country suddenly decides to peg its currency to the dollar or some other currency? When a currency is unable to maintain the peg, what do you think are the typical forces that break the peg?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

International financial management

ISBN: 978-0324593471

9th Edition

Authors: Jeff Madura

See More Books

Question Posted: Jun 04, 2012 07:42 AM

See More Questions

Why might a country suddenly decide to peg its currency to the dollar or some other currency? When a currency is unable to maintain the peg, which forces usually act to break the peg?
Why do you think a company would benefit from using cloud computing rather than client server computing?
Why do you think some large, well-known companies such as Cisco Systems, Intel, and Microsoft prefer to trade on the Nasdaq OMX markets rather than on an organized securities exchange such as the...
Consider a situation with two countries that have abatement cost functions : for j=L and j=H. The countries have identical damage functions D(E)= d.E.For each country the parameters s j are drawn...
Discuss the issue of commercialism versus professionalism in the accounting profession with respect to the changes in the rules of conduct described in the case. Do you think these changes are good...
Which of the steps in the accounting cycle are performed only at the end of the accounting period?
Discuss the role of statistical inference with respect to the huge sample sizes prevalent in data mining.
Kangaroo Media Inc. has issued and outstanding a total of 40,000 shares of $7.20 preferred shares and 120,000 of common shares. The company began operations and issued both classes of shares on...
Exercise 7-23 The petty cash fund of Sage's Auto Repair Service, a sole proprietorship, contains the following. 1. Coins and currency $15.40 2. Postage stamps 3.10 3. An I.O.U. from Richie...
Marcy is a 17 year old dependent high school student with income from wages of $8,000 and $4,000 of interest income from bonds given to her by her grandparents. What is Marcy's total income tax...
Assume you have a subsidiary in Australia. The subsidiary sells mobile homes to local consumers in Australia, who buy the homes using mostly borrowed funds from local banks. Your subsidiary purchases...
Assume that the central bank of the country Zakow periodically intervenes in the foreign exchange market to prevent large upward or downward fluctuations in its currency (called the Zak) against the...
Describe the group of the polynomial (x 4 - 5x 2 + 6) Q[x] over Q.
MTB Surfboards has a P / E of 2 0 . The discount rate for this firm is 3 0 percent. They had earnings of $ 2 , 0 0 0 , 0 0 0 and 1 0 0 , 0 0 0 shares of common stock outstanding. What should be the...
Question 4 (20 marks) Laboratory 4: Superposition Theorem Objectives: 1. Understand the principles of a Superposition Theorem 2. Determine the characteristics of a Superposition Theorem...
2 Ursala, Inc., has a target debt-equity ratio of .65. Its WACC is 10.4 percent, and the tax rate is 23 percent. a. If the company's cost of equity is 14 percent, what is its pretax cost of debt? b....
Thinking about Nike's corporate practices, discuss your approach to starting a company that outsourced labor in order to reduce manufacturing costs. What decisions would you make to combine...
Owen Properties recently purchased a building in a community that is eligible for participation in the National Flood Insurance Program (NFIP). Under the regular program of the NFIP, the maximum...
Lyfts drivers are technically independent contractors, rather than employees. Are there reasons to expect them to feel less commitment to the company because of that designation? Why?
Define the essential properties of the following types of operating systems: a. Batch b. Interactive c. Time sharing d. Real time e. Network f. Parallel g. Distributed h. Clustered i. Handheld
______ ______ refers to meeting economic and legal responsibilities but not going beyond them.
Identify some factors that affect cash inflows.
What is a budget? What is the purpose of a budget? How can a budget help when you are anticipating cash shortages or a cash surplus?
How do you assess the accuracy of your budget? How can finding forecasting errors improve your budget?
Mass LLp developed software that helps farmers to plow their fiels in a mannyue sthat precvents erosion and maimizes the effoctiveness of irrigation. Suny dale paid a licesnsing fee of $23000 for a...
Average Rate of Return The following data are accumulated by Lone Peak Inc. in evaluating two competing capital investment proposals: 3D Printer Truck Amount of investment $40,000 $50,000 Useful life...
4. (10 points) Valuation using Income Approach An appraiser appraises a food court and lounge and provides the following assessment: o O The building consists of 2 floors with the following (6)...

Why do you think a country suddenly decides to peg its currency to the dollar or some

Question:

Step by Step Answer:

A country will usually attempt a peg to reduce speculative flows that occur because of exchange rate ...View the full answer

International financial management

Students also viewed these Banking questions