3. Why is GM worried about the ARS exposure? What operational decisions could it have made or now make to manage this exposure? (Check exhibit 12 and 13—what are the forward rates telling you? Recall that we learned that forward rates capture market expectations of future exchange rate movements? What does this mean for how expensive hedging is by this time? Indeed, this is why anticipatory risk management is so critical—when hedging a risk is the most desirable, the cost of that hedge rises substantially too. Good news is that there are some non-financial alternatives to hedging this exposure…)

2. you take $100 you had kept under your mattress and deposit it on your bank account. if this $100 stays in the banking system as reserves and if banks hold reserves equal to 10% of deposits, by how much does the total amount of deposits in the banking system increase? by how much does the money supply increase?

Guardian inc. is trying to develop an asset-financing plan. the firm has $450,000 in temporary current assets and $350,000 in permanent current assets. guardian also has $550,000 in fixed assets. assume a tax rate of 40 percent. a. construct two alternative financing plans for guardian. one of the plans should be conservative, with 70 percent of assets financed by long-term sources, and the other should be aggressive, with only 56.25 percent of assets financed by long-term sources. the current interest rate is 12 percent on long-term funds and 7 percent on short-term financing. compute the annual interest payments under each plan.

What is ur favorite song and by who i know dis is a random question