Assuming that the value of 1 Ghana cedis as at today is equal to $0.4100, two...

Assuming that the value of 1 Ghana cedis as at today is equal to $0.4100, two days ago the value of the Ghana cedis was GHC1 to $0.3800.

i.calculate the percentage changed of the dollar in cedis.

ii.Explain two factors that could have affected this change

Expert Solution

1. In this example, the Percentage change of dollar in cedis

= Change in the Exchange rate of Cedis/USD / Value of Ghana Cedis to USD as on today

= (0.3800 - 0.4100) / 0.4100

= -0.03 / 0.4100

= -7.3170%

The negative sign shows that the USD Currency is depreciating as compared to the Ghana Cedis.

2. There are several reason for the depreciation of the currency

Depreication of the currency refers to when the value of one currency relatively falls as compared to the other currency.

1. Inflation : It refers to the general increase in the prices of goods and services, when the inflation rate soars the country has to change the interest rate to bring the price to the same level and it reduces the value of the currency at the same time as you would be able to purchase less quantity as compared to earlier. Therefore, it results in the depreciation of the currency.

2. Interest rate : When the interest rate is higher in the country it attracts the foreign investors and push people to save more while the lower interest rate tends to promote spending, therefore, it affects the exchnage rate.

jeff jeffy answered 1 year ago

Recently, there was cyber-attack on one of the banks in Ghana. Millions of Ghana Cedis were...

Recently, there was cyber-attack on one of the banks in Ghana. Millions of Ghana Cedis were transferred from the bank to some individual’s account. In details, explain cryptography and its purpose in providing cybersecurity to firms such as financial institutions. Analyze Kruskal’s algorithm and explain its application in data structures and algorithms. Write a program to implement Kruskal’s algorithms using a high-level programming language. Describe in details abstraction and their relevance in data structures. Question 2...

The government of Ghana spends two hundred thousand and fifteen cedis (GHC200,015.00) on goods and services....

The government of Ghana spends two hundred thousand and fifteen cedis (GHC200,015.00) on goods and services. The households spent thirteen thousand and twenty-five cedis (GHC13,025.00) on consumption of goods and services. Two thousand and fifty cedis (GHC2,050.00) was spent on capital goods. Indirect taxes amounted to four hundred and fifty cedis (GHC450.00) and the subsidies of one hundred and fifty cedis (GHC150.00). There was a transfer payment of two hundred cedis (GHC200.00). a. Present the information contained in the above...

A Sales Manager at WATWIUC Stores collected data on annual sales (in thousand Ghana Cedis) and...

A Sales Manager at WATWIUC Stores collected data on annual sales (in thousand Ghana Cedis) and years of experience of 30 sales persons. He wants to explore the relationship between years of experience and annual sales. a) Which variable is the dependent variable in this study? b) Which variable is the independent variable in this study? c) The coefficient of correlation between the dependent variable and the independent variable was found to be 0.9, meaning that the dependent and the...

1. Assuming that you have been employed by the government of Ghana to develop a 10-year...

1. Assuming that you have been employed by the government of Ghana to develop a 10-year development plan for Ghana. (a) Describe the steps you would follow to design the plan by using any one of the following planning models i. Rational planning ii. Transactive planning iii. Bargaining planning (b) Discuss the potential benefits and challenges associated with the use of your chosen planning model to perform the task above.

The present value of $20,000 to be received 25 years from today, assuming an opportunity cost...

The present value of $20,000 to be received 25 years from today, assuming an opportunity cost of 18 percent is

what is the present value of $6320 to be recieved exactly 32 years from today assuming...

what is the present value of $6320 to be recieved exactly 32 years from today assuming an interest rate of 3.5% p.a?

Assuming the government of Ghana is selling a government bond to fight COVID-19, and at the...

Assuming the government of Ghana is selling a government bond to fight COVID-19, and at the same time, ASHANTI Goldfields Company is selling a corporate bond to increase its production. Under what conditions will the production-linked corporate bond be over-subscribed at the expense of the government bond. Explore all possible scenarios.( not more than one-page). B) Based on the functions of the banking system, give reasons why governments bail out banks during economic crises? C)Is the World heading for a...

1. Complete this sentence: "A company’s enterprise value is equal to _____ _ value, plus ____...

1. Complete this sentence: "A company’s enterprise value is equal to _________ _________ value, plus ________ financial liabilities". a) the sum of ; all assets ; net b) total asset ; plus cash ; current c) the sum of ; equity ; net d) total asset ; equity ; current e) the sum of ; equity ; all 2. Which of the following statements are correct with respect to the market value of equity (MVE)? There may be more than...

How to Run descriptives and a two-tailed, two sample assuming equal variance t-test. Here's your data:...

How to Run descriptives and a two-tailed, two sample assuming equal variance t-test. Here's your data: Weight of Apples in Grams Apple ID Farm A Farm B 1 131 151 2 147 159 3 134 162 4 134 158 5 136 159 6 137 160 7 140 150 8 134 160 9 136 160 10 133 160 11 134 160 12 132 158 13 139 162 14 136 160 15 135 154 16 135 155 17 135 159 18 138...

1. Value the following scenario, assuming there is no end to the timeline and the following...

1. Value the following scenario, assuming there is no end to the timeline and the following data: Cost of equity = 17.75% Cost of debt = 6.83% Debt = $583MM Equity = $1237MM Tax rate = 40% Long-term growth expectations = 3.6% Future dividends are forecast as follows: Year 0: n/a Year 1: 128 Year 2: 149 Year 3: 162 Year 4: 175 Year 5: 182 (Round your answer to the nearest cent) 2. Use the data below to compute...

Question