Economics · Financial Management
Solve the following three banking and insurance related financial case problems: 1. The US Dollar Index (DXY) is at 104. The Euro has a weight of 0.576. If the Euro appreciates by 5% against the Dollar, calculate the new approximate DXY using a simplified linear adjustment. 2. The government's fiscal deficit is 18,00,000 crore. If it finances 15% of this through monetizing the deficit (borrowing from RBI), calculate the increase in high-powered money. 3. An insurance broker manages a portfolio worth 50 crore in premiums with an average commission of 2.5%. If operational costs are 80 lakh, calculate the net profit.
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1DXY 101.00; Monetization 2,70,000 crore; Profit 45 lakh
- 2DXY 101.60; Monetization 2,70,000 crore; Profit 45 lakh✓
- 3DXY 106.00; Monetization 3,00,000 crore; Profit 50 lakh
- 4DXY 100.00; Monetization 1,00,000 crore; Profit 20 lakh
Correct answer
DXY 101.60; Monetization 2,70,000 crore; Profit 45 lakh
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