Mistakes/condusions

Question 1

Impact if BoE buys more £ with $

Answer 1

XR increases

Question 2

What happens to import price if XR increases

Answer 2

Import price down

Question 3

confusion: Increase in deposits and multiplier

Answer 3

Increase in deposits = deposit + increase
addition = just the increase
increase in deposits = intital deposit/cash ratio or * credit multiplier

Multiplier = 4
total increase = initial deposit* multiplier
additional increase = above - initial injection

Question 4

What are the three short term and one long term measure of shareholder wealth

Answer 4

short term
ROCE
EPS
P/E ratio

long term
value of the companies future cash flows in todays terms

Question 5

MEC vs

Answer 5

MEC = interest rate vs level of investment - accelarator