If you have the exchange rates for converting U.S. dollars to yen and U.S. dollars to the euro, you could convert from yen to euros by using a: A) Spot rate B) Indirect rate C) Counter rate D) Cross rate ANSWER D
Date: September 19th, 2020
Tourism would show up on the A) merchandise account. B) current account. C) capital account. D) A and C. ANSWER Answer: B
Date: September 19th, 2020
What is the subcategory in the current account that indicates that the government of a country and other residents gave more money to foreign countries and residents as gifts and grants than the country itself received from abroad? A) unilateral current transfers, net B) balance on goods and services C) balance on current account D) […]
Date: September 19th, 2020
A balance of trade deficit results in a current account A) deficit. B) surplus. C) IMF intervention. D) World Bank loan. ANSWER Answer: A
Date: September 19th, 2020
The purchases of goods and assets by foreign residents from domestic residents are ________ because they are a source of foreign exchange. ________ increase the supply of foreign money in the foreign exchange market. A) credit transactions B) current account transactions C) debit transactions D) capital account transactions ANSWER Answer: A
Date: September 19th, 2020
The accounting statement that summarizes all the economic transactions between residents of the home country and residents of all other countries is called the A) balance of trade. B) current account balance. C) balance of payments. D) capital account balance. ANSWER Answer: C
Date: September 19th, 2020
Blockbuster is a North American video and DVD sales and rental chain. Use the equation approach and Blockbuster’s financial statement for Year 2 to calculate additional funds needed (AFN) in Year 3. Assume that sales in Year 3 will be $5.67336 billion. Assume a 0% dividend payout rate. Blockbuster Inc. Income Statement and Balance Sheet […]
Date: September 19th, 2020
The U.S. Department of Commerce breaks the total net change in U.S. assets abroad into transactions. Which one of the following options is not part of the three categories? A) transactions in “U.S. official reserve assets” B) transactions in “other U.S. governmental assets” C) transactions in “U.S. private assets” D) transactions in “other U.S. public […]
Date: September 19th, 2020
Some investors think that the Rumple Shirt Co.’s repurchase program was a bad deal for shareholders, because the company paid too much for its repurchased shares. Before the repurchase, the company’s shares traded for $30. Over the last quarter, Rumple repurchased 150 million shares (15% of shares outstanding) at an average price of $33 per […]
Date: September 19th, 2020
Some investors think that Prestige Entertainment’s repurchase program was a bad deal for shareholders, because the company paid too much for its repurchased shares. Over the last quarter, Prestige repurchased 717.16 million shares at an average price of $17.35 per share. Shares outstanding are now 11,235.51M and the stock price is $12.01, which analysts regard […]
Date: September 19th, 2020
