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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 correct in his conclusions that Bundovian Semiconductors would benefit from the imposition of a tariff or quota?
A. He is only correct about the quota.
B. He is only correct about the tariff.
C. He is correct on both.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
Williams is correct in his assessment of the effects of a tariff and a quota. Both would benefit Bundovian Semiconductors. The company would be more competitive in the domestic market because imports would fall and domestic production would rise. (Study Session 4, LOS I6.b)
NEW QUESTION: 2
An engineer deploys a new Cisco IOS XR router and connects a Gigbit Ethernet port to an existing Cisco Catalyst 3650 Series Switch. The engineer uses known good optics and fiber, but the link has not come up and it is stuck in the down/down state.
What is the root cause of this issue?
A. UDLD must be enabled on the Catalyst 3650 Series switch
B. CDP is not enabled on the Cisco IOS XR device
C. Cisco IOS XR devices must use copper connections to Catalyst 3650 Series Switches
D. Auto negation must be disabled on the Catalyst 3650 Series Switch
Answer: D
NEW QUESTION: 3
Welche Aussagen sind richtig? (Mehr als eine Antwort ist wahr)
A. Einem Audit können mehrere Fragenlisten zugewiesen werden.
B. Jedem Überwachungsdatenobjekt kann ein Dokument zugewiesen werden.
C. Für jede Frage in der Fragenliste kann eine Bewertung aufgezeichnet werden.
D. Keine
Answer: B,C
NEW QUESTION: 4
Which capacity provisioning capabilities are required for a cloud operational environment?
A. monitor server, storage, and network services through a single console
B. provision server, storage, and network into or within an existing infrastructure
C. provision new servers for new workloads
D. provision discrete IP network and SAN addresses
Answer: B
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