1. Current period purchases of foreign stocks and bonds by U.S. residents are re
ID: 1141099 • Letter: 1
Question
1. Current period purchases of foreign stocks and bonds by U.S. residents are recorded as credits in the section of the U.S. , while dividends and interest payments to U.S. residents on previously purchased foreign stocks and bonds are recorded as credits in the section of the U.S. :
a. Direct Investment; Financial Transactions Account; Balance of Income Flows; Balance on Current Account
b. Portfolio Investment; Financial Transactions Account; Net Transfers; Balance on Current Account
c. Portfolio Investment; Financial Transactions Account; Balance of Income Flows; Balance on Current Account
Balance of Income flows; Balance on Current Account; Direct Investment; Financial Transactions Account
2. For many years, the U.S. has experienced a Balance of (Visible) Trade , a Balance on Services , a Balance on Income Flows , and overall, a Balance on Current Account :
a. Surplus; deficit; deficit; surplus
b. Deficit; deficit; deficit; deficit
c. Deficit; surplus; surplus; surplus
d. Deficit; surplus; surplus; deficit
3. An ADR (American Depository Receipt) is a negotiable certificate that represents stocks of a non-US company that is traded on US financial markets. Suppose the ADR of a British firm is convertible into five shares of stock. The share price per unit was GBP45 when the UK market closed. If the current spot rate is GBP/USD = 1.5500, the USD price of the ADR is:
USD 225.00
USD 348.75
USD 145.16
USD 69.75
The current USD/NOK spot exchange rate is 8.2320 while one year ago the same exchange rate was 6.1926. In relative value terms:
The USD has depreciated while the NOK has appreciated
The NOK has depreciated while the USD has appreciated
Both currencies have appreciated
Both currencies have depreciated
Use the following information to answer questions 5 through 7. Today’s spot price quotations are
USD/NOK = 8.2320; USD/SEK = 8.4112; USD/DKK = 6.6396; EUR/USD = 1.1241
The cross-exchange rate between SEK and NOK (SEK/NOK) = .
The cross-exchange rate between SEK and DKK (SEK/NOK) = .
The cross-exchange rate between EUR and DKK (EUR/DKK) = .
If the bid and ask rates on the Mexican peso (MXN) are respectively, USD0.0590 and USD0.0610, the bid-ask spread (in percentage terms) = .
If new information about the current bribery scandal in Brazil emerges that directly implicates the Brazilian President and as a result, a group of army generals is rumored to be planning a coup d’état against her, what might happen to the bid-ask spread on BRL?
There is no connection between possible political events and bid-ask spreads
The bid-ask spread would narrow
The bid-ask spread expressed in USD would widen but the bid-ask spread expressed in BRL would narrow
None of the above
Explanation / Answer
1) .The answer is B -) Portfolio Investment; Financial Transactions Account; Net Transfers; Balance on Current Account.
that is Current period purchases of foreign stocks and bonds by U.S. residents are recorded as credits in the Portfolio Investment; Financial Transactions Account section of the U.S., while dividends and interest payments to U.S. residents on previously purchased foreign stocks and bonds are recorded as credits in the Net Transfers; Balance on Current Account. section of the U.S.
2) please upload it againt. it against chegg policy.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.