Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Microeconomics Expert

problem 1) Payment of a dividend by the American company to a foreign stockholder represents:

(a) debit in the U.S. financial account.
(b) credit in the U.S. current account.
(c) credit in the U.S. official reserve account.
(d) debit in the U.S. current account.

problem 2) According to National Income Accounting Identity, the present account (surplus) is equal to:

(a) S-I
(b) C+I+G+X
(c) I+X
(d) T-G

problem 3) If bank is selling Euros for $0.89, then determine the implied euro price of the dollar?

(a) 2.0
(b) 1.999
(c) 2.323
(d) 1.123

problem 4) Assume in London £/$ = 0.5 while in New York £/SF =0.2. The corresponding cross rate (SF/$) is:

(a) 2.5.
(b) 0.1.
(c) 0.4.
(d) 0.3.

problem 5) Riskless transactions to take advantage of profit opportunities because of a price differential or yield differential in excess of transaction costs are known as:

(a) differential actions.
(b) cash transactions.
(c) arbitrage.
(d) forward transactions.

problem 6) Difference between bid (buying) rates and ask (selling) rates is known as the:

(a) profit.
(b) arbitrage.
(c) spread.
(d) forward transaction.

problem 7) Size of the spread that a dealer will quote for foreign exchange transaction will differ depending on

(a) degree of market volatility at the time.
(b) degree of risk associated with a particular currency.
(c) size of the market for the currency being traded.
(d) All of above.

problem 8) Euro is said to be selling at a ______ if spot dollar price is $1.18 and the nine-month forward rate is $1.16

(a) forward discount
(b) forward premium
(c) forward spread
(d) none of the above

problem 9) Transaction in which both spot transaction and a forward transaction are agreed upon simultaneously is:

(a) arbitrage
(b) call
(c) swap
(d) put

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M97344

Have any Question? 


Related Questions in Microeconomics

Assignmentyou will submit your second comprehensive summary

Assignment You will submit your second comprehensive summary (4-5 pages) regarding your final progress report. If you are still in your original business, what lessons did you learn? If not, what went wrong? What improve ...

Assignmentwe often have difficulty understanding how our

Assignment We often have difficulty understanding how our own customs and traditions could be viewed any way other than as right. In that regard, cultural relativism (viewing a custom from the other culture's perspective ...

Assignment land restoration proposalpart 1please see

Assignment: Land Restoration Proposal Part 1 Please see attachment for part 1 and only complete highlighted section for this assignment. Your team has been given the land rights to a 100-acre abandoned parcel of land. Th ...

Assignment1laura just opened a coffee shop in nyc named

Assignment 1. Laura just opened a coffee shop in NYC named Squirrel Coffee. Hoping to cater to the hipsters, she sells a special kind of cold brew infused with nitrogen, which she dubs ‘nitro coffee'. Assume for the purp ...

1 a explain in clear language the economic inefficiency

1. a) Explain in clear language the economic inefficiency associated with adverse selection. b) The ACA (aka Obamacare) included an insurance mandate, which forces everyone to purchase insurance or face a penalty. Under ...

Assignmentreview the cba provided in the resources section

Assignment Review the CBA provided in the resources section between the Trustees of Columbia University and Local 2110 International Union of Technical, Office, and Professional Workers. Describe how this is similar to a ...

Assignmentin the article at the beginning of the readings

Assignment In the article at the beginning of the readings book, Aronson talks about Social Psychology as a leap of faith, and about the imperfect nature of social psychological experiments (which is true of science in a ...

Question 1 the agrizone corporation invests 140140 million

Question 1. The Agrizone Corporation invests $14.014.0 million in a new inventory tracking system. A. The opportunity cost of Agrizone's decision is the value of leaving the money unutilized. B. The opportunity cost of A ...

Question 1 a scatter diagram is useful to determine if a

Question 1. A scatter diagram is useful to determine if a relationship exists between two variables. True False Question 2. Consider the following gasoline data: Quarter 1, Year 1, Year 2 1, 150, 156 2, 140, 148 3, 185, ...

Introduction to economic evaluation of health promotion

Introduction to Economic Evaluation of Health Promotion Interventions Assignment Evaluating Cost-effectiveness using Markov cohort models: The HPV case The goal of this assignment is to provide students with applied prac ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen