hello Friends,
I am also intrested in Group Study. Can we creat any whatsapp group for the study?
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PRATIK KHANDELWAL
Accountant & Taxation Advisor
DUBAI
United Arab Emirates
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Original Message:
Sent: 02-17-2021 07:37 AM
From: Tayba Al-Mehdar
Subject: Help understanding question CMA PART 2
Question: 38If the annual U.S. inflation rate is expected to be 5% while the euro is expected to depreciate against the U.S. dollar by 10%, an Italian firm importing from its U.S. parent can expect its euro costs for these imports to | |
| Answer (A) is correct. Inflation in the U.S. means that $1.05 now has the purchasing power formerly enjoyed by $1.00. The 10% depreciation of the euro means that its purchasing power in dollars has declined to 90%. Dividing the U.S. inflation factor of 1.05 by the new euro value of .90 and subtracting 1 results in a net loss of euro purchasing power against the dollar of 16.67%. |
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Tayba Al-Mehdar
Analyst
Khobar
Saudi Arabia
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