All of the following affect the balance of the capital account except?

Q: FOREIGN CURRENCY FINANCIAL ASSETS International reserves Deposits with foreign banks Other cash…

A: Investment refers to the assets which are invested in order to build the wealth as well as save…

Q: Long-Term Liabilities are reported on a company's balance sheet at the present value of all future…

A: Long-Term Liabilities are NOT reported on a company's balance sheet at the present value of all…

Q: Why are U.S. Treasury bonds considered to be safe? O They are repaid from user fees. O They are…

A: A Treasury Bond is a short- or long-term financial instrument issued by the national government.…

Q: Unibank also needs to review its off-balance-sheet risk. Using the following balance sheet value of…

A: Over-the-Counter (OTC) Contracts:OTC agreements are bilateral contracts formed informally between…

Q: If reserves are scarce, how would the federal funds rate change (increase or decrease) if the Fed:…

A: Federal funds is referred as an excess reserves that are held by the financial institutions for over…

Q: A bank has the following assets: cash and government bonds of $34.43, government agency bonds of…

A: Cash and government bonds = $34.43  Government agency bonds = $27.44  Mortgages = $65.51 Loans to…

Q: What is the historical real return on long-term government bonds? (Do not round intermediate…

A: Real return is a return earned after adjusting for inflation. The following formula is employed to…

Q: The GAP analysis and EAR analysis a. If GAP is positive and interest rate increases the same on both…

A: Gap analysis is the difference between actual performance and potential performance. It is a…

Q: The discount rate is the rate that the O Fed charges member banks. Fed charges the Treasury for…

A: The interest rate used in financial valuation to calculate the present value of future cash flows is…

Q: Considering the Market for Loanable Funds, explain what the following statement means: “Bonds…

A: The statement refers to the decision-making process for issuing bonds in the context of the market…

Q: Identify the incorrect statement. A. Banks that issue bonds increase their equity. B. Companies that…

A: Bonds are debt instruments that entities use to raise capital. When an entity (whether a bank,…

Q: Which of the following is an instrument of monetary policy? The interest rate on three-month…

A: Monetary policy refers to the credit control measures adopted by the central bank of a country.

Q: An amortized loan means that the principal is gradually paid off during the life of the loan. True…

A: The question is related true or false.

Q: Higher interest rates on treasury bonds Identify whether it: (Select one choice per number) (A)…

A: Inflation is defined as a quantitative estimate of the rate at which a currency's buying power is…

Q: To what extent does the company’s bond issuance policies support or hinder their strategies? For…

A: Bond:A bond is a loan that has a fixed interest or coupon rate. The investors who invest in bond…

Q: 4. Assume for US bank the interest rate on loans is 10% and on Treasury bonds 8%. The interest rate…

A: Accounting equation refers to the basis of accounting which states that the transaction would impact…

Q: Which of the following events would make it more likely that a company would choose to call its…

A: Callable Bonds: A callable bond, additionally recognized as a redeemable bond, is a bond that the…

Q: Analyse what exposure banking institutions had to the subprime mortgage crisis and how MBSs…

A: Funds- The total amount of loanable funds in an economy is the sum of all the money saved and…

Q: When the Fed p

A: Treasury bonds are the benchmark for credit spreads. Reduce the value of corporate bonds by widening…

Q: Reserve requirements effectively impose a tax on bank deposits that reduce profits.  Why does this…

A: The terms "reserve requirement" and "reserve ratio" are sometimes used interchangeably to refer to…

Q: ​Money markets are markets for ​Foreign stocks. ​Consumer automobile loans. ​U.S. stocks.…

A: The objective of the question is to identify what type of securities are traded in the money…

Q: 1. Loans typically come with restrictions on the borrower called which are intended to protect the…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Q4. A bank that finances long term loans with short term debt securities is exposed to  a. increase…

A: Interest rate is the cost of financing the loan and other capital for the purpose of financing the…

Q: In the history of the United States, interest rates usually rise during expansions. expansions,…

A: Interest rates during expansion During the expansion state of economy, the demand for money…

Q: The primary objective of every banking company is: a. To earn maximum profits out of its investments…

A: The primary objective of every banking company is To earn maximum profits out of its borrowing and…

Q: Which of the following events would make it more likely that a company would call its outstanding…

A: Callable Bonds:A callable bond, additionally recognized as a redeemable bond, is a bond that the…

Q: Why have NZ Government bond rates increased over the past two years? What impact are the higher bond…

A: Government bonds are debt securities issued by national governments to finance public spending or to…

Q: on the cost of funds through savings is 2% while the Federal funds rate is 5%. Show how ead the…

A: Interest Rate- The fees assessed to the borrower in exchange for the assets taken from the lenders…

Q: Which of the following factors would tend to increase the risk premium between corporate bonds and…

A: Several factors can contribute to an increase in the risk premium between corporate bonds and…

Q: What is float in the banking system? A. An illegal activity that is a form of bank fraud B.…

A: Float in banking system means that money is counted due to time difference between deposit made and…

Q: True or False 1. The holder of the bond indenture is receiving interest income on a regular basis.…

A: Equity financing is the process of raising money from the investors and give ownership to the equity…

Q: Which of the following events would make it more likely that a company would choose to call its…

A: Justification:Callable bond is a type of bond which can be redeemed before its maturity period by…

Q: Use a T accounts to illustrate the changes for the Bank of Canada and ABC banks If the Bank of…

A: In the given question we are required to illustrate the changes for the Bank of Canada and ABC Bank…

Q: ease give me calculation!

A: The balance sheet shows the financial position of the company by recording all the assets,…

Q: Explain what happens to the bond price and interest rate and why. Expected inflation increases The…

A: Bond prices and interest rates are interconnected and influenced by various factors. Understanding…

Q: Which of the following events would make it more likely that a company would call its outstanding…

A: A callable bond has the property that it can be called by the bond issuer company. It happens when…

Q: How do term bonds differ from serial bonds? Which type of bonds have governments been more likely to…

A: Hi, as per the answering guidelines, I cannot refer a source. You can add any which you want and…

Q: LExplain what happens to the bond price and interest rate and why. i) i1) ii1) Expected inflation…

A: A bond's price is the present discounted value of its future cash flow. It denotes the total of the…

Q: STRIPS are:   a) Government-backed schemes that allow investors to hedge against market risk.…

A: STRIPS (Separate Trading of Registered Interest and Principal Securities) was established to give…

Q: 41) Sweep accounts A) have made reserve requirements nonbinding for many banks. B) sweep funds out…

A: Sweep accounts are financial tools used by banks and financial organizations to effectively manage…

Q: 1.The first thing that the bank consider prior calling a bond issued a. lower interest in the…

A: As per Bartleby guidelines, since you have posted multiple questions,  first 1 question will be…

Q: The discount rate is O the interest rate commercial banks charge each other for overnight loans. the…

A: The discount rate is the interest rate the Federal Reserve charges member banks for loans from the…

Balance of Payments

BOP is categorized into the following three components: