Chapter 11 Quiz

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Q2-5 In the monetary approach to the balance of payments (under flexible exchange rates) an increase in the proportion of income that people in country A wish to hold as money would, other things equal, lead to _______ in country A's demand for money and to ______ of A's currency in the foreign exchange markets.   a. an increase / a depreciation b. an increase / an appreciation c. a decrease / a depreciation d. a decrease / an appreciation

A foreign subsidiary’s functional currency is its local currency, which has not experienced significant inflation. The current exchange rate at the balance sheet date is the appropriate exchange rate for translating:

PLEASE ANSWER THE COLUMN FULLY AND CORRECTLY PLEASE DO THE RIGHT CALCULATION DOUBLE CHECK AS WELL TO GIVE ME THE RIGHT ANSWER  REQUIRED:    Given the following information, what are the NZD/SGD currency against currency bid-ask quotations? Note: Do not round intermediate calculations. Round your answers to 4 decimal places. Bank Quotations American Terms   European Terms     Bid Ask Bid Ask New Zealand dollar 0.7277 0.7284 1.3772 1.3786 Singapore dollar 0.6144 0.6149 1.6311 1.6324     answer   Bid Ask New Zealand dollar ? ? Singapore dollar ? ?

A sale of goods by a U.S. company was denominated in a foreign currency. The sale resulted in a receivable that was fixed in terms of the amount of foreign currency that would be received. Exchange rates between the dollar and the foreign currency changed so that a loss was incurred. This loss should be included as a a. Extraordinary item in the income statement b. Separate component of stockholders' equity O c. Deferred item in the balance sheet O d. Component of income from continuing operations

A foreign subsidiary’s functional currency is its local currency, which has not experienced significant inflation. The current exchange rate at the balance sheet date is the appropriate exchange rate for translating:     Insurance Expense                              Prepaid Insurance  Yes                                                  Yes Yes.                                                  No No                                                    Yes No                                                        No

PLEASE ANSWER FULLY BY GIVING ME THE RIGHT ANSWER  DO NOT GIVE ME THE RIGHT ANSWER  DOUBLE CHECK AND GIVE ME THE CORRECT ANSWER

This is Accounting MCQ i want answer and explanation why it's correct and another incorrect Thanks waiting for answer

Assume a Japanese company, Ascent Robotics, sells its equipment to a U.S. client invoicing half of the bill in yen and the remaining half in U.S. dollars. Which type of hedging through invoice currency does this situation represent?  Shifting exchange exposure Money market hedge Sharing exchange exposure Diversifying exchange exposure

4

+II Check my Suppose the direct foreign exchange rates in U.S. dollars are 1 British pound 1 Canadian dollar = $ 0.74 09' $ Required: a. What are the indirect exchange rates for the British pound and the Canadian dollar? (Round your final answers to 4 decimal places.) 1 USD British pounds 1 USD Canadian dollars b. How many pounds must a British company pay to purchase goods costing $8,000 from a U.S. company? (Do not round intermediate calculations.) British pounds c. How many U.S. dollars must be paid for a purchase costing 4,000 Canadian dollars? (Do not round intermediate calculations.) U.S dollars 25 令xD nST Prt Sc Insert Delete Home Break ScrLk Backspace NumLk 60

(a) (b) (c) Question 2 London foreign exchange market exchange rate spot rate three-month forward American 1.8620--1.8640 30-60 points Q: how much is three-month forward dollar real exchange rate ? London foreign exchange market exchange rate three-month forward spot rate American 1.8620--1.8640 80 --- 30 points Q: how much is three-month forward dollar real exchange rate ? London foreign exchange market exchange rate three-month forward spot rate American 1.8620-1.8640 40 --- 70 points Q: how much is three-month forward dollar real exchange rate ?

15.7A