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# FINANCIAL MANAGEMENT 8-11 problems - Essay Example

Summary
PROBLEMS 8 – 11 8. For your country indicate the inflation rate, the unemployment rate and the population growth rate. How do these metrics impact economic activity? The United States of America has an inflation rate of 1.63%. The unemployment rate is at 9% (Bureau of Labor Statistics 2011)…

## Extract of sampleFINANCIAL MANAGEMENT 8-11 problems

Download file to see previous pages... High inflation is usually because there is too much money floating around in the economy. If the inflation gets out of hand, the FED will need to enforce a monetary policy that will slow down money being spent in the economy. The slowing of the economy will increase unemployment. 9. What is the exchange rate between the Euro and the US Dollar? What is the exchange rate between the US Dollar and the currency of your country? ( If there is an overlap in the currencies, choose any two of interest.) Discuss the trends in these exchange rates. The exchange rate between the U.S. Dollar and the Euro is .72 for each U.S. Dollar. This means that the U.S. Dollar is worth more than the Euro. The exchange rate between the U.S. Dollar and Canada is 1.022. This means that the U.S. Dollar is worth .022 more than the Canadian Dollar. The exchange rate for the U.S. Dollar and the Polish Zloty is 2.957. This means that it requires 2.957 Zloty to equal one U.S. Dollar (Exchange-Rates 2011). The trends for these exchange rates are steady for the U.S. Dollar and the three given countries. Over the past year, the rates compared to the U.S. Dollar have slowly risen. The U.S. Dollar has obtained more value in recent years compared to other money. The U.S. Dollar is most equal with the Canadian Loony. 10. Forecast the price of a barrel of oil at June 30, 2010. ...Download file to see next pagesRead More
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