You have just received your paycheck from Chick-Fil-A. You go to the bank to deposit your check in the amount of $120.00 to your bank account. The teller issues you a deposit slip. Upon leaving the bank, you go to Target. There you see a pair of jeans you like on sale for $30.00 from the usual $40.00. You decide it’s a great deal and purchase the jeans. You give the cashier your debit card to pay for the purchase and the jeans become yours. Using this scenario, please discuss how the three uses of money are being utilized. Please be specific about each use and which step in this scenario represents each use.

The east asiatic company (eac), a danish company with subsidiaries throughout asia, has been funding its bangkok subsidiary primarily with u.s. dollar debt because of the cost and availability of dollar capital as opposed to thai baht-denominated (b) debt. the treasurer of eac-thailand is considering a 1-year bank loan for $247,000.the current spot rate is b32.03 /$, and the dollar-based interest is 6.78% for the 1-year period. 1-year loans are 12.04% in baht.a. assuming expected inflation rates of 4.3 % and 1.24% in thailand and the united states, respectively, for the coming year, according to purchase power parity, what would the effective cost of funds be in thai baht terms? b. if eac's foreign exchange advisers believe strongly that the thai government wants to push the value of the baht down against the dollar by5% over the coming year (to promote its export competitiveness in dollar markets), what might the effective cost of funds end up being in baht terms? c. if eac could borrow thai baht at 13% per annum, would this be cheaper than either part (a) or part (b) above?