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

Assignmentthe paper is to be a properly formatted apa paper

Assignment The paper is to be a properly formatted (APA) paper that I expect will take at least 5 pages to do properly. It is to take the material discussed in the course and apply it to some issue or observation in your ...

Economics assignment1 multiple product pricinganswer the

Economics Assignment 1. Multiple Product Pricing: Answer the following about the pricing of multiple products: a. Icarus Medical Supplies produces adhesives that are used to reassemble broken bones. Pindrop Medical Produ ...

Assignment maximizing profits and minimizing lossesconsider

Assignment: Maximizing Profits and Minimizing Losses Consider a supplier of agricultural equipment who is deciding how much of two products should be produced by his firm. You determine what the two products are. Now cre ...

Microeconomicswatch this 30 mins youtube link on how the

Microeconomics Watch this 30 mins. YouTube link on 'How The Economic Machine Works' You will enjoy it! https://youtu.be/PHe0bXAIuk0 Write down your understanding of 'How The Economic Machine Works' and make sure to suppo ...

1 the crr model european claimconsider the crr model of

1. The CRR model: European claim. Consider the CRR model of stock price S with T periods and parameters d (a) Consider the European claim X with expiry date T and the payoff X = g(S r ) = 1/S T 1[k,∞)(S T ). Show that th ...

Three paragarphs economicswrite 3 paragraphs answering the

Three paragarphs Economics Write 3 paragraphs answering the following questions: 1. How does each of the following relate to the financial crisis of 2007-2008: declines in real estate values, sub-prime mortgage loans, an ...

Assignmentselect and review an inspection report posted on

Assignment Select and review an inspection report posted on the OSHA website. The inspection reports can be searched by industry group or establishment name by accessing the reports through the OSHA's Statistics & Data P ...

Microeconomics assignmentquestion 1 - read attachment

MICROECONOMICS ASSIGNMENT Question 1 - Read Attachment 1 Answer the following questions. Use diagrams where appropriate. [Assume that the Australian grape and wine industries are perfectly competitive markets]: Use deman ...

Application evaluation of research resultsno research

Application: Evaluation of Research Results No research project or study is perfect. Studies that contain errors can produce unreliable or misleading results. As a consumer of research, you must be able to determine the ...

Assignmentscenario summarya kansas city based supplier of

Assignment Scenario Summary A Kansas City based supplier of health care information technology (HCIT) solutions has recently hired you as a Human Resource Manager. You are in charge of hiring new medical consultants for ...

  • 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