Assume the following to be a portion of the simplified balance of payments statement for a hypothetical country. The values are given in billions of dollars.ExportsImportsCapital OutflowsCapital Inflows$900- $675- $225$135If the central bank has not changed its holding of foreign-currency reserves during this period, then the capital-service account for this country should be equal tobillion.

given information exports = $900 imports = -675 capital outflow = -225 capital inflow = $135

Assume the following to be a portion of the simplified balance of payments statement for a hypothetical country. The values are given in billions of dollars. Еxports $900 - $675 Imports Capital Outflows Capital Inflows - $225 $135 If the central bank has not changed its holding of foreign-currency reserves during this period, then the capital-service account for this country should be equal to S billion.

Assume the following to be a portion of the simplified balance of payments statement for a hypothetical country. The values are given in billions of dollars. Еxports $900 - $675 Imports Capital Outflows Capital Inflows - $225 $135 If the central bank has not changed its holding of foreign-currency reserves during this period, then the capital-service account for this country should be equal to S billion.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Allium Advisors, an international fund manager, plans to sell equities denominated in British pound (GBP) and purchase an equivalent amount of equities denominated in Egyptian Pound (EGP). The following are the current exchange rates between the EGP, GBP and USD. Maturity Spot 30-day 90-day EGP/USD 13.2913/68 35/65 52/48 GBP/USD 0.7936/79 53/33 22/40 Calculate: V. The 90-day annualized premium or discount GBP in EGP
A country in Southeast Asia states it's gross domestic product in terms of yen. Last year it's GDP was 50 billion yen when one U.S. dollar could be exchanged into 120 yen. Required : a. Determine the country's GDP in terms of U.S. dollars for last year.
Suppose you work at the FOREX desk of a multinational bank. No particular country is the home country for you as your responsibility is to conduct foreign exchange trade in whichever way is profitable for the bank. Using this as your guideline, consider the following data: S0 = ¥92/US$ S180 = ¥92/US$ IUS = 2% per annum IJapan = 0.09% per annum With a starting amount of US$10 million or its Yen equivalent, can you make a UIA profit? What if a CIA was conducted at F180 of ¥90/US$? What are your observations?
D3)
Ganado Europe (B). Using facts in the chapter for Ganado Europe, assume as in Problem 11.1 that the exchange rate on January 2, 2020, in Exhibit 11.5 dropped from $1.2000 = €1.00 to $0.9000 = €1.00 (Rather than to $1.000/€). Recalculate Ganado Europe’s translated balance sheet for January 2, 2020, with the new exchange rate using the temporal rate method. What is the amount of translation gain or loss? Where should it appear in the financial statements? Why does the translation loss or gain under the temporal method differ from the loss or gain under the current rate method?
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The following table shows PPP exchange rates (the price of 1 U.S. dollar in units of the foreign currency) for several countries, determined based on the Big Mac Index. PPP exchange rate (1USS=) United States (US$) Argentina (Peso) Australia (A$) Brazil (Real) Britain (£) Canada (C$) Chile (Peso) China (Yuan) В.75 1.17 2.33 0.61 1.12 469 3.54 a. According to this data, what are the predicted exchange rates between the following countries? i. Argentina and Australia ii. Brazil and Canada iii. Chile and China iv. China and Canada b. Suppose that a Canadian dollar buys more silver in Australia than it buys in Mexico. What does purchasing-power parity imply should happen?
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please help me solve this. Explain to me step by step how to find the answer
Australia's Current Account. Use the following balance of payments data for Australia from the IMF: E. What is Australia's balance on services for years 2005, 2010, and 2015? The balance on services for year 2005 is (in millions) s (Round to the nearest integer and enter any deficit with a negative sign.)
From the following data provided, ascertain what would be the exchange rates that the Bank would quote for an FDI transaction amounting to USD 2 Mn for value cash basis, assuming a margin of 3 paise where., Spot USD/INR = 75.0900/75.1000 ., Cash/Spot : 4/5 paise. Arrive at the exchange rate up to 4 decimal places. Adhere to the steps involved in calculation.

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