International Monetary Relations

Select a U.S. multinational company. In terms of currency denomination, discuss how the firm prices its revenues and costs. For MNE's with multiple foreign operations, consider any one of those operations and the contribution it is making to the parent firm's profits. Using this information, what do you think would be the effect of increases/decreases in the dollar's exchange value on the firm's profitability? Be sure to show all applicable work.

International Monetary Relations

The media and others suggest that the current account deficit run by the U.S. is a problem for the economy. What do you think? What action(s) would you advise federal government officials to take on this issue?

Money Multiplier Ratios

1. Assuming individuals hold no currency, calculate the simple money multiplier using the following reserve ratios: 5%, 10%, 20%, 25%, 50% 2. What is the impact of these ratios on the level of new money that can be created given a $100,000 cash deposit into the banking system?

Monetary policy federal reserve

1. What type of monetary policy has the Federal Reserve been using for the past year (easy/expansionary, tight/contractionary, or neutral/non-involvement)? 2. Why have they been using this policy? 3. How have they implemented the policy (changing the "interest rate", changing the reserve ratio, or open market operations)? 4. How has this policy impacted you and/or your company(retail electronic sales)?

Federal reserve banking system

Fully describe the method by which the Federal Reserve uses the banking system to create new money.