Current and capital account deficit
Exhibit 3.3 states that in year 1991, the U.S. had current account deficit and consecutively a capital account deficit. Explain about how this may occur?
Expert
In year 1991, U.S. has experienced an overall BOP deficit that should have been accommodated by Federal Reserve’s official reserve action which means decreasing down its reserve holdings.
What do you mean by Letter of Credit?
What do you mean by the term Entry in Accountancy?
Presently, spot exchange rate is $1.50/£ and three-month forward exchange rate is $1.52/£. Three-month interest rate is 8.0% per annum within the U.S. and 5.8% per annum within the U.K. Suppose that you can borrow as much as $1,500,000 or £1,000,000.
Discuss how to compute overall balance and explain some of its significance.
Define Expenditures with suitable example?
Using the data below,prepare abbreviated income statements for the year 2003 and 2004 on cash basis. Cash receipts from sales: 2003 2004 2005 on 2003 sales $295,000 $160,000 $30,000 On 2004 sales 0 355,000 90,000 On 2005
Define the term Equipment in Accountancy? Why they are used?
What is currency trading at discount or at premium in forward market?
Suppose that treasurer of IBM has an extra cash reserve of $1,000,000 to invest for the six months. Six-month interest rate is 8% per annum in U.S. and 6% per annum in the Germany. Presently, spot exchange rate is DM1.60 per dollar and six-month forward exchange rate
Normal 0
18,76,764
1940926 Asked
3,689
Active Tutors
1456281
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!