International Monetary Relations

Since Exxon is a multination company . In terms of currency denomination how do Exxon 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 Exxon's information, what do you think would be the effect of increases/decreases in the dollar's exchange value on the firm's profitability?

US dollar vs Euro

Congratulations, you just won the Irish Lottery! You bought a ticket while you were on vacation in Ireland, and you just won a 1 million Euro jackpot after all taxes were taken out. If the current exchange rate is US$1 equals 1.25 Euros, how much did you win in US dollars? Suppose that the interest rate in Irish banks is 5% for a one year CD. In the USA, the rate is 2% for a one year CD. If you left your winnings in Ireland, how many Euros would you have in a year? If you had taken your winnings back to the USA, how many dollars would you have? Suppose when you cashed in your CD in Ireland a year from now, the exchange rate had changed from US$1 to 1.25 Euro, to US$1 to 1.30 Euro. How... click for more

How does monetary policy effect interest rates on credit cards, mutual funds, and mortgages?

In order to make better decisions in life, how does monetary policy effect the interest rates on debt (like credit cards), investments such as stocks and mutual funds, and mortgage rates.

Several Problems

1. A. briefly discuss the economic reforms that have been taking place in latin America since the late 1980's B. according to the Economic freedom of the world report which of these counties appear to have been successful in recent years? 2. How is the U.S. economy affected by: A. a recession in Mexico (monetary policy and fiscal policy) B. simulative monetary policies (monetary policy and fiscal policy) 3How and why do monetary and fiscal policy affect the exchange rate? 4.in the early 1980's the united states pursued a policy of fiscal expansion and monetary contraction a. What do you suppose was the effect of that policy mix on US int... click for more

Financial markets determine equilibrium of interest rate

Please explain point wise in details how financial markets determines its equilibrium of interest rate by using the concept of loanable fund theory. Please support your explanation with examples?