1. Which of the following does NOT describe a day of personal use?
1. The property owner rented his house to his employer for $50 a day. The fair market rental value is $75 a day.
2. The owner's brother stayed on the property for a week paying $500. The fair market rental value is $500 a week.
3. The owner's mother stays on the property all year paying $600 a month rent. The property is the mother's principal residence and the fair market rental value is $600 a month.
4. The owner rents his mountain property to an outside party for $500 a week in exchange for staying at their lakefront property for $750 a week. The fair market rental value of the mountain house is $500 a week.
2. Assume that the Japanese government wants to reduce inflation. Which of the following would be an appropriate action for the Japanese government?
Buy yen with foreign currency
None of the above
Sell yen for foreign currency
Increase interest rates
Decrease interest rates