Q1.Graph the demand for and supply of Australian dollars for US dollars. Label each axis.

From Australia's perspective, show graphically and explain the effect on the Australian dollar of the following.

Australia’s major trading partners experience higher RGDP and income growth resulting in an increase in the price of Australian exported commodities (e.g. coal, iron-ore).
Additionally:
-   there is increased speculation of the Australian dollar (AUD) based on speculators expectations of its future value.
-   Lower interest rates in Australia decrease Australian financial investment overseas.
                                          

Q2.   Explain the impact/ consequence of the change in the exchange rate in (a) above will have on Australia’s net exports, real GDP and the price level in the future.

i)No excel please . A US firm will receive 125 million pounds in 6 months from its overseas operations. The company could buy a 6 month forward contract on 125 million pounds to hedge its foreign exchange risk.T of F

ii)8The peso/Canadian dollar spot rate is C$.12/MP and the peso sells at a 3% forward premium. Find the current forward rate. C$.1212/MP bC$.1164/MP   c C$8.0989/MP    dNone of the above

iii)In general, hedging with derivative contracts involves taking a position in the derivatives market that allows you to offset potential losses you might incur with the underlying asset.T or F iv)An American company is set to receive 50 million Peruvian soles from its overseas operations in 12 months. The company decides to enter into a 12 month forward contract for 50 million soles to mitigate its price risk. The forward rate is $.30/sole. Find the American firm's profit/loss (in terms of dollars) on the forward contract if the spot rate is $.40/sole at expiration. Round intermediate steps to four decimals. my guess is 5 million ?help please .

Q1. Under US, income tax law deductions are Classifying into Deductions for and deductions from adjusted gross income. Discuss in detail the items of each kind.

Q2. Explain the different concepts of income from accounting, economics and taxation perspectives (DO NOT copy from the slides). .

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Q3. Calculate the taxable income for each case below:

1- A taxpayer who is 30 old and single, has adjusted gross income of $60,000 and itemized deductions of $4,000. In 2013.

2- A single taxpayer provided the following information for 2013: Salary $90,000 Interest on local government bonds (qualifies as a tax exclusion) 5,000 Allowable itemized deductions 10,000

3- A taxpayer, who is single and age 44, received $60,000 of gross income and had $5,000 of deductions for AGI and $5,000 of itemized deductions.

1.4 "the rand depreciated, on average, against the US dollar (from 13.90 to 14.90 rand per USD) during the period under review."

critically evaluate the possible impact of the depreciation of the Rand on the trade balance in South Africa.(10)

Let us continue with analyses of data from the study of M Daviglus et al (N Engl J Med 1997) on the relationship of fish consumption with death from coronary heart disease (CHD) among 1,822 male employees of the Western Electric Company Hawthorne Works in Chicago who were followed for 30 years. we consider the 242 men who reported consumption of ≥ 35 g/day of fish at baseline. Among these 242 men, 46 died of CHD during follow-up.

a. Provide a point estimate and an appropriate 95% confidence interval for the 30- year risk (probability) of CHD death among employees who typically consume at least 35 g/day of fish. Additionally provide a brief interpretation of your confidence interval.

b. Perform a one-sample test to determine whether the 30-year risk (probability) of CHD death in those who consumed at least 35 g/day of fish is significantly different from 0.25. Make sure to specify your null and alternative hypotheses and give a brief conclusion.

come up with the scenario where housing could give us a WTP to avoid pollution from a nearby coal power plant and a scenario where we could undercover the necessary payment people would be willing to accept to tolerate the coal plant nearby.

Zane just graduated from college and us thrilled to explore his new life and all the excitement that comes with it. Just now, Zane received communication from a company to whom he owes $100,000 in student loans. The information in the communication states that Zane agreed on an annual interest rate of 7.99% that is compounded annually. Also, Zane is allowed to make one fixed payment at the end of each year for the next 10 years.

Zane is shocked by this information because it has been 4 years since he signed that agreement but he is not dishearted because he received another email from a company he interviewed with that he has been hired at an above average starting salary. Zane is a planner and he pulls up his old financial calculator to figure out how he is going to be debt free very soon.

Although the loan asks for payment at the end of each year, Zane believes that he should not wait all year long and instead should save every month. His expected salary after taxes is $5,000 per month. He has a savings account at a credit union that is expected to pay 3% interest on savings that is compounded monthly.

In order to save the annual payment, Zane has decided to deposit an equal amount of money from his paycheck to his savings account. What should be the monthly amount for Zane to have accumulated the annual payment? Show steps on how you got answer.

Eric received an email from Amazon Customer Service that said "Thank you for contacting us." But Eric did not contact them. Instead, an attacker had contacted them and pretended to be Eric. When Amazon Customer Service asked the attacker to identify himself all he had to do was give Eric’s name, email address, and mailing address—which the attacker got from Whois, which contains Eric’s registration information for his website. However, Eric knew to protect his actual mailing address so the registration information on Whois was actually a hotel close to Eric’s house. Because the information matched what was on file, Customer Service told the attacker the mailing address of Eric’s order, which was his real home address. Eric contacted Amazon, found out these details, and told them not to release any of his information to anyone who contacted Customer Service, to which Amazon agreed. Fast forward two months. Eric again received another "Thank you for contacting us" email. After contacting Amazon again, he found that this time the attacker had tried to get the last four digits of Eric’s credit card number on file through more social engineering tricks.

Fortunately, this time Amazon did not surrender that specific piece of information (although they had ignored his previous instruction not to give out any information). Had they provided the credit card number the attacker would have had enough information to pass the "I’m-the-real- Eric" test on almost any of Eric’s online accounts (using his name, email address, mailing address, and last four digits of his credit card) and trick their Customer Service into resetting Eric’s password. This would then allow the attacker to get into Eric’s online accounts and purchase a virtually unlimited number of items charged to Eric’s credit card. What went wrong? Should the first Amazon Customer Service representative have been reprimanded? What policies should Amazon have had in place to prevent this? What technologies should there be in place to prevent this? As a customer, what should you do to protect your online accounts?

Write a one-page paper on your analysis.

Data from the Framingham Study allow us to compare the distributions of initial serum cholesterol levels for two populations of males: those who go on to develop coronary heart disease and those who do not. The mean serum cholesterol level of the population of men who do not develop heart disease is µ = 206mg/10ml and the standard deviation is σ = 36mg/100ml. Suppose, however, that you do not know the true population mean; instead, you hypothesize that µ is equal to 230mg/100ml. This is the mean initial serum cholesterol level of men who eventually develop the disease. Since it is believed that the mean serum cholesterol level for the men who do not develop heart disease cannot be higher than the mean level for men who do, a one-sided test conducted at the α = 0.05 level of significance is appropriate.

a. How could you increase the power?

b. You wish to test the null hypothesis H0: µ ≥ 230mg/100ml against the alternative HA: µ < 230mg/100ml at the alpha = 0.05 level of significance. If the true population mean is as low as 206mg/100ml, you want to risk only a 5% chance of failing to reject H0. How large a sample would be required?

c. How would the sample size change if you were willing to risk a 10% chance of failing to reject a false null hypothesis?