Option A, Part 1: Group Foreign Exchange Simulation Report Submit Assignment
Due Monday by 23:59
Points 30
Submitting a file upload
Course code and name: BAFI 1018 - International Finance
Assessment name: Foreign Exchange Report
Weight: 30%
Assignment due date: 18 May 2020 by 23:59
Length: 3000 words
Feedback mode:
Feedback will be provided using Turnitin’s inline marking tool and general comments.
Learning Objectives Assessed:
This assignment assesses Learning Objectives 1-6.
Details:
This is a group assessment which comprises two pieces of work:
The first written report (30%): due in Week 11.
The final verbal reflective journal (video presentation of 10%): due in Week 11
Requirements for the first written report (30%):
Each group must self-select their members. Groups may have 3 or 4 members. There is no exception to this.
Students must demonstrate their understanding and application of the course materials to analyze and explain the factors that determine the historical movement of AUD/USD exchange rate and predict what the rate will be in 1 December 2020. The specific requirements are as follows:
Tasks/Objectives
(1) Discuss using on Purchasing Power Parity.
(2) Discuss using on Interest Rate Parity.
(3) Discuss using the five factors in the partial supply and demand model.
(4) Develop your own theoretical model by combining any factors that you deem as important in determining the above exchange rate.
(5) Discuss any qualitative and quantitative data that may affect the determination of the above exchange rate based on Task 4.
(6) Comments and Conclusions – compare and contrast Task 1-5.
For Task 1-4, you must demonstrate your understanding about the theories in Topics 1 - 6 and application of these theories in determining the exchange rate. You may use data and calculations in your discussions. You must provide a brief summary at the end of each task.
The maximum count of words is 3000 words for the report (excluding references). 1 mark will be deducted for every 100 words exceeding the limit.
A Turnitin originality report and a signed (by all group members) cover sheet must be attached to the report and submitted as instructed by your lecturer by the due date.
Proper referencing and citations based on the Harvard style must be used. The list of references does not count towards the word limit. You will receive 0 (zero) marks and may be subject to disciplinary actions by the University if you plagiarize. Please refer to Section H for information on Plagiarism.
Further details will be discussed in the lecture during the semester.
Should there be any issues or disputes arising from group work, i.e. student finds him/herself cannot get along with group mates or majority of group members are not satisfied with the free-riding behavior of a particular group member, any changes to group membership must be made by Lecture 6. If changes to group membership were not made by Week 6 and the issues or disputes persist to the end of the semester, groups which face such issues or disputes must notify the lecturer by signing and submitting a group contribution statement (available on Canvas) in the last lecture. The group member that has issues with the majority of his/her group will receive only 50% of the marks that are awarded to his/her group as stated in the Declaration of Group Work Commitment. There will be no extension granted to the group based on the rationale that all students have substantial and adequate time to conduct their learning and preparation for the assignment throughout the semester.
Students must cite the data source they use for their analysis (for example Yahoo finance).
The assignment is due in week 11.
Group Work Contribution Statement.pdf
Actions
RMIT Coversheet.pdf
Actions
Penalties for late submission
All assignments will be marked as if submitted on time then the mark awarded will be reduced by 10% for each day (or part of a day) it is late. Assignments that are late by 7 days or more will not be marked and will be awarded zero marks. This applies to all members in a group.
c. Compute the Switzerland/United Kingdom exchange rate Franc/pound for both 2013 and 2014. Did the Swiss franc appreciate or depreciate in value relative to British pound during this time?
d. We know that the percentage change in the US-Canadian exchange rate (E$/C$) from its level in 2013 (0.971) to 2014 is a positive 6%. Please compute the value of the exchange rate (E$/C$) in 2014. Did the U.S. dollar appreciate or depreciate during this time relative to the Canadian dollar?
In November 2018, the European commission launched a strategic long-term plan to achieve a
climate-neutral economy by the year 2050 (see
https://ec.europa.eu/clima/policies/strategies/2050_en). In this section you will be doing some
background research on this strategy and its implications.
a) The strategy covered seven key areas: energy efficiency; deployment of renewables;
clean, safe and connected mobility; competitive industry and circular economy;
infrastructure and interconnections; bio-economy and natural carbon sinks; carbon
capture and storage to address remaining emissions. Choose ONE of these areas and
briefly explain it. (4 marks) Word limit: 250 words
b) Australia’s trade with the EU constitutes almost 15% of Australia’s global trade.
Choose an Australian industry that is likely to be affected by the EU’s planned
transition to a low-carbon economy. Explain how this plan will affect your chosen
industry’s trade. (12 marks) Word limit: 500 words
In answering the above two questions, you must reference at least two sources per answer.
Your references could include, for example, reports published by government or nongovernment organizations, or reputable newspaper articles. These references cannot be
documents provided by the company and Wikipedia and blogs are not acceptable sources.
You must provide a reference list of ONLY the sources you refer to in answering these
questions. References must be in the Harvard referencing style. You can find details of how to
reference using the Harvard referencing style here:
https://guides.library.uq.edu.au/referencing/uqharvard/about
4 marks will be allocated for correct referencing.
4 marks will be allocated for correct grammar and clear and logical writing
| Suppose the current exchange rate for the Russian ruble is RUB 37.69. The expected exchange rate in three years is RUB 34.59. |
| What is the difference in the annual inflation rates for the United States and Russia over this period? |
FIN HOMEWORK
Chapter 4: E2
Chapter 5: P1, P6
E2
As the executive of a bank or thrift institution you are faced with an intense seasonal demand for loans. Assuming that your loanable funds are inadequate to take care of the demand, how might your reserve bank help you with this problem?
P1
Assume that banc one receives a primary deposit of $1 million. The bank must keep reserves of 20 percent against its deposit. Prepare a simple balance sheet of assets and liabilities for banc one immediately after the deposit is received.
P6
Assume a financial system has monetary base of $25 million the required reserves ratio 1s 10 percent, and there are no leakages in the system.
· What is the size of the money multiplier?
· What will be the system’s money supply?
The case:
Venezuela’s economy was driven by oil and gas production and exports. Economically speaking, the country is suffering from hyperinflation. The Central Bank tries to deal with this issue by increasing the level of interest rates.
1- According to you, what could be the short-run consequences of this increase in the level of interest rates on the direct exchange rate with USD?
2-At the beginning of the 2010s prices were not fluctuating a lot. It took time for the entrepreneurs and the population to take into account the inflation issue.
Imagine that this policy has to be structural, i.e.: a permanent increase in the level of interest rate. How this long-term perspective may change your previous answer?
Pete Morton is planning to go to graduate school in a program of study that will take 2 years. Pete wants to have $12300 available each year for various school and living expenses. If he earns 6percent on his money, how much must be deposit at the start of his studies to be able to withdraw $12300 a year for 2 years? Use the appropriate Time Value of Money table [Exhibit1-A, Exhibit 1-B, Exhibit 1-C, OR Exhibit1-D] (Round your answer to the nearest whole number. Do not include the comma, period, and “$” sign in your response.) . . .
Nowadays, entrepreneurs and the population react much more rapidly to monetary policies announcements and to economic news.
3-What is the consequence of this slow adjustment of the level of prices on the nominal exchange rate?
4-How does it change your previous answer?
Fiscal Prepare next year’s financial plan and operational budget. Note: Keep in mind that the budget you created for your Phase 2 Individual Project did not take into account the growth of the new facility. The CEO has asked that you expand that budget and provide a finalized budget that will take into account the new services offered. The CEO has stated that there is $3 million that you can incorporate into the budget for additional staffing, services, maintenance, and so forth. Make sure the budget reflects the following: Increase in revenue reimbursement Allocation for the proposed