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NEW QUESTION: 1
Robert Williams is a junior analyst at Anderson Brothers, a large Wall Street brokerage firm. He reports to Will McDonald, the chief economist for Anderson Brothers. McDonald provides economic research, forecasts, and interpretation of economic data to all of Anderson's investment departments, as well as the firm's clients. McDonald has asked Williams to analyze economic trends in the country of Bundovia. The currency of Bundovia is the Bunco (BU).
Williams first analyzes the effect of rising nominal Bundovian interest rates relative to U.S interest rates on the supply and demand for BU. He determines that the increase in Bundovian nominal interest rates would increase the demand for BU and, because the BU supply curve is upward sloping, the BU will appreciate and the equilibrium quantity of BU will increase proportionately.
Bundovia has announced plans to impose either a tariff or a quota on semiconductor imports from the United States. McDonald also asks Williams to analyze the potential effect on Bundovian Semiconductors, the dominant semiconductor manufacturer located in Bundovia. Currently, Bundovian Semiconductors is not competitive in the global semiconductor market because its higher production costs make it unable to generate profits at the current world market price. Williams concludes that the imposition of either a tariff or quotas would benefit Bundovian Semiconductors. The company would become competitive with foreign producers in its domestic semiconductor market because imports would be reduced and domestic production would rise.
Exhibit 1 shows the trend in the average BU/USD exchange rate over the past three years.

Williams asks the bank for a GBP/SFr cross rate.
From the same bank, Williams receives the following forward rate quotes in the USD/GBP market:
* 30-day forward rate: USD/GBP = USD/GBP = 2.0045 - 55
* 60-day forward rate: USD/GBP = USD/GBP = 2.0075 - 85
Williams has uncovered a potential arbitrage opportunity in the foreign exchange markets. The current spot rate is $2.00 per BU. The Bundovian risk-free interest rate is 3%, and the one-year forward rate is $2.10 per BU. The U.S. risk-free rate is 5%.
Is Williams's analysis of the effect of rising nominal Bundovian interest rates on the value and equilibrium quantity of the BU correct?
A. Yes.
B. No, because the supply of BU will also increase, and the BU will depreciate instead of appreciate.
C. No, because the supply of BU will decrease and, as a result, the equilibrium quantity of BU will not change significantly.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
Rising nominal Bundovian interest rates will increase the demand for BU and decrease the supply of BU.
The increase in demand, all else equal, will cause the BU to appreciate and increase the equilibrium quantity. The decrease in supply, all else equal, will also cause the BU to appreciate but decrease the equilibrium quantity demanded. The net effect of these two changes is to cause the BU to appreciate.
However, the separate effects on quantity demanded will offset, and the equilibrium quantity will not be significantly affected. (Study Session 4, LOS 17.c and I9.d)

NEW QUESTION: 2
______ obtain, develop and manage the resources required to deliver goods and services to clients.
A. Operation Maintainers
B. Operations managers
C. Operational researchers
D. None of the above
Answer: B

NEW QUESTION: 3



A. Option A
B. Option B
Answer: A

NEW QUESTION: 4
Refer to the exhibit. The security engineer has configured cisco cloud web security redirection on a Cisco ASA firewall. Which statement describes what can be determined from exhibit?

A. In case of issues, the next step should be to perform debugging on the cisco ASA.
B. This out has been obtained by browsing to whoami.scansafe.net
C. The IP address of the Scansafe tower is 209.165.200.241
D. The URL visited by the user was LAB://testgroup.
Answer: B

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