This topic contains a solution. Click here to go to the answer

Author Question: All of the following actions were taken by the Thai government to help Thailand maintain its peg ... (Read 66 times)

tuffie

  • Hero Member
  • *****
  • Posts: 534
All of the following actions were taken by the Thai government to help Thailand maintain its peg against the dollar in the 1990s except
 
  A) imposing restrictions on exports to the United States to prevent too many dollars from entering the economy.
  B) borrowing dollars from the International Monetary Fund in exchange for baht.
  C) increasing domestic interest rates to attract more foreign investors.
  D) buying baht on the foreign exchange market to support higher demand for the baht.

Question 2

Suppose you choose an investment that has historically generated an averagenominal return of 5 percent per year. Explain how inflation and risk may affect your future real rate of return on this investment.
 
  What will be an ideal response?



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

ergserg

  • Sr. Member
  • ****
  • Posts: 338
Answer to Question 1

A

Answer to Question 2

Inflation reduces the buying power of money. Any appreciation in the value of the final balance will need to be adjustedto account for rising prices. In other words, if the prices of goods and services increase during the holding period, the real rate of return on the initial investment is lower than the nominal rate of return.The real rate of return is the nominal rate of return minus the inflation rate.
Risk implies that the return on the investment is not guaranteed. Sothe rate of return that you experience may be greater or lower than the historical average rate of return.
A-head: INVESTMENT RETURNS
Concept: Inflation, risk




tuffie

  • Member
  • Posts: 534
Reply 2 on: Jun 29, 2018
:D TYSM


aruss1303

  • Member
  • Posts: 314
Reply 3 on: Yesterday
Gracias!

 

Did you know?

Malaria was not eliminated in the United States until 1951. The term eliminated means that no new cases arise in a country for 3 years.

Did you know?

The first documented use of surgical anesthesia in the United States was in Connecticut in 1844.

Did you know?

To combat osteoporosis, changes in lifestyle and diet are recommended. At-risk patients should include 1,200 to 1,500 mg of calcium daily either via dietary means or with supplements.

Did you know?

The most common treatment options for addiction include psychotherapy, support groups, and individual counseling.

Did you know?

When taking monoamine oxidase inhibitors, people should avoid a variety of foods, which include alcoholic beverages, bean curd, broad (fava) bean pods, cheese, fish, ginseng, protein extracts, meat, sauerkraut, shrimp paste, soups, and yeast.

For a complete list of videos, visit our video library