--%>
Assignment Help - homework help

Purchasing power parity of US and Canadian dollar

Under what condition would the U.S. dollar and the Canadian dollar said to be have achieved purchasing power parity?
The U.S. dollar and the Canadian dollar would be assumed to have achieved purchasing power parity while the exchange rate reflects the relative prices of market basket of traded goods and services at the present exchange rate. There would be no incentive to change U.S. dollars to Canadian dollars or to convert Canadian dollars to U.S. dollars and purchase goods or services in the other country.

   Related Questions in Finance Basics

  • Q : Capital investment appraisal methods

    The capital investment appraisal methods like NPV, IRR, ARR, PV and Time value of money have become irrelevant post Celtic Tiger. Due to the depth of the recession companies do not have budgets to invest. Explain? At first use this

    		•
  • Q : Define Governors Budget Governor's

    Governor's Budget: The publication the Governor represents to the Legislature, by January 10 every year. It has recommendations and approximates for the state’s financial operations for the budget year. This also displays the real revenues and e

    		•
  • Q : Describe Treasury bill Describe

    Describe Treasury bill? How risky is it?Treasury bills are short term debt instruments issued through the U.S. Treasury which are sold at a discount and pay face value at maturity.  They are very close to risk-free as they are backed throug

    		•
  • Q : Clarify trade credit is free credit or

    Trade credit is free credit. Do you agree or conflicting with this statement? Clarify. Trade credit is not free. It contains a cost. Who bears that cost based on the terms of the transaction among the grantor and the recipient of the trade c

    		•
  • Q : Problem on tax and spend at possible

    Normal 0 false false

  • Q : Lower for a specified company-the cost

    Normal 0 false false

  • Q : Change in supply of money Normal 0

    Normal 0 false false

  • Q : How are financial trades made on a

    How are financial trades made on a planned exchange?Each of exchange listed security is traded at a particulate location on the trading floor called the post. The trading is supervised through specialists who act either as brokers (bringing toge

    		•
  • Q : Chartered bank loan policy Normal 0

    Normal 0 false false

  • Q : Financing costs in capital budgeting

    How are financing costs incorporated generally into the capital budgeting analysis procedure? Usually financing costs are captured in the discount or hurdle rate while doing NPV or IRR analysis. Usually the operating cash flows do not comprise

    		•